When will the next recession begin?

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A 2020 US recession “According to the June 11 business section of the USA Today, many experts say in 2020 for the United States. If it happens, it would be the first time such a forecast came true; recall that economists in general have predicted zero of the last seven recessions. The stock market is no […]

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Weekly Market Update – week ending 15 June, 2018

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Investment markets and key developments over the past week The past week saw most share markets gain as strong US data more than offset worries about a more hawkish Fed and tariffs, the ECB remained dovish, Italian risks receded a bit and the US-North Korean summit was seen as successful. Chinese shares were not helped […]

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Fed interest rate decision – commentary from Charles Schwab Australia

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Lachlan McPherson, Senior Investment Consultant at Charles Schwab Australia, said: “The US economy has moved from strength to strength in 2018, with consumer and business confidence continuing to rebound. In addition, recent US economic data has demonstrated the US economy is strong enough to keep downward pressure on the unemployment rate—and upward pressure on the […]

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Weekly market update – week ending 8 June, 2018

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Investment markets and key developments over the past week The past week saw share markets rebound as investors refocussed a bit away from the geopolitical soap operas back to favourable underlying global growth. This saw major share markets rebound, although Eurozone shares were constrained by ongoing weakness in Italian shares, and bond yields rise which […]

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March Quarter shows improved housing affordability

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The March quarter edition of the Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report shows an improvement in housing affordability nationally, with the proportion of median family income required to meet average loan repayments decreasing by 0.3 percentage points to 31.3 per cent. The number of first home buyers decreased by 14.5 per cent […]

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Weekly review and global economic outlook for the week ahead – week commencing 4 June 2018

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Summary Political developments in Italy dominated market performance over the week. Sharp volatility in Italian and other Eurozone equity markets and yields on 2-year Italian government bonds rose to their highest levels in over five years. Developed government bond yields rallied in response. US data releases pointed to strength in the domestic labour market while […]

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Weekly market update – week ending 1 June, 2018

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Investment markets and key developments over the past week The past week saw financial markets dominated yet again by geopolitical developments with first the turmoil in Italy and then US trade announcements rattling share markets, but with good US payrolls and the formation of an Italian government helping boost US and Eurozone shares on Friday. […]

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Italy – an idiosyncratic story: Insight Investment

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April LaRusse, head of fixed income investment specialists, at Insight Investment, a leading global fund manager notes about the Italian crisis: “In contrast to the European sovereign crisis, Italy is now an idiosyncratic story. Across Europe, the previous crisis hit countries such as Spain, Greece and Portugal are all on an improving path, reaping the […]

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Record car affordability; Consumer caution

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Consumer sentiment; Car affordability CommSec Car Affordability index: Currently someone on the average wage needs to work for 23.2 weeks to afford a Ford Falcon – the best (lowest) result on record. Four years ago the same worker would have needed to work almost three weeks longer to afford the same purchase. Consumer sentiment: The weekly […]

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Weekly market update – week ending 25 May, 2018

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Investment markets and key developments over the past week The past week has again seen geopolitical issues dominate with renewed trade worries out of the US, the cancellation of the North Korean summit and rising angst around the formation of a populist coalition government in Italy. Despite this US shares managed a slight rise but […]

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