Commentary on North Korea – markets developing ‘Kim-fatigue’

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“The most likely scenario for U.S./North Korea relations remains an uneasy status quo. First, outright military conflict seems unlikely. North Korea will continue to irritate the US and Asian allies with missile tests, but Pyongyang surely recognizes that any strike would bring an overwhelming response. “Likewise, the US has few good options for effectively reining […]

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RBA policy suggests mining slump is over, says Principal Global Investors 

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Global economic engine is chugging along “The synchronised global economic expansion now underway is the latest in a series of transitions the world economy has recently experienced. In 2015, the world was near recession from the surge in the U.S. dollar and the collapse in oil prices that began mid-2014. Last year, a recovery began after […]

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CPD: Australia, the lucky country (or is it?)

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Has Australia dodged another recession bullet? Since 2012, one of Australia’s biggest economic threats has been the collapse in mining investment. It was the associated capex boom pre- and post-GFC that sustained Australia’s economic performance. But as projects came to an end in 2012, there was an expected drag on that performance. Enter the Reserve […]

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Global market and economic review

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The market ended last week in a cautious mood, with Florida in a state of emergency due to Hurricane Irma and the continued fears that North Korea would carry out another missile test over the weekend. Investors were wary and safe haven assets were well bid. As the worst case scenario for Irma failed to […]

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Why is 2% inflation considered a good thing?

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It has been a decade since the start of the financial crisis, and the low levels of inflation as measured by the Consumer Price Index (CPI) continue to disappoint both markets and the Federal Reserve Stewart D. Taylor,  Diversified Fixed Income Portfolio Manager at Eaton Vance , a leading global fund manager says: “Perhaps the mystery […]

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Jobs bonanza: Quarter of a million jobs added

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Labour force; China data; Airfares Employment rose for the 11th straight month, up by 54,200 in August after rising by 29,200 in July (previously reported as a rise of 27,900 jobs). Full-time jobs rose by 40,100 while part-time jobs rose by 14,100. Economists had tipped a 15-20,000 increase in jobs. Hours worked rose by 0.4 […]

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Widening gap between income & spending

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Household income, wealth & expenditure Rich Australia: The Bureau of Statistics (ABS) has released a barrage covering the finances and spending patterns of Aussie families. Wealth continues to soar – and not just from the value of homes. And the gap between income and spending widened over the past six years. Less spending on essentials: […]

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Real estate sentiment at 44-year low

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Consumer Confidence Consumer confidence: The Westpac/Melbourne Institute survey of consumer sentiment rose by 2.5 per cent to a 4-month high of 97.9 in September. The confidence index is down 4.4 per cent on a year ago. A reading below 100 denotes pessimism. Wisest places for savings: The monthly consumer confidence survey includes quarterly data on […]

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Australia no longer the cheapest: CommSec iPad/iPhone indexes

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Economic trends Is the Aussie dollar too strong? According to CommSec iPhone index Australia is now the 25th cheapest country in the world (of 57 nations) to buy an Apple iPhone 7 in US dollar terms. This time last year, Australia was the 17th cheapest to buy the iPhone 6 Plus and a year before Australia was […]

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Weekly market update – week ending 8 September, 2017

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Investment markets and key developments over the past week Share markets mostly fell over the last week as worries around North Korea continue, combining with concern about the impact of hurricanes on US growth, albeit most markets remain in the range they have been in for a while and have proven quite resilient in the […]

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