Learning to love Janet Yellen

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Principal Global Investors Chief Global Economist, Bob Baur, comments on U.S. monetary policy, China’s latest trade data and the synchronised global upturn. In a recent Wall Street Journal interview, President Trump said, ‘I do like a low-interest rate policy, I must be honest with you,’ quite a natural feeling from a real-estate baron who likely […]

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CommSec State of the States April 2017

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Overall Results How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; business investment; unemployment; construction work done; population growth; housing finance and dwelling commencements. Just as the Reserve Bank uses long-term averages to determine the level of ‘normal’ interest rates; we […]

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‘Frexit’ looms over coming French presidential elections

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Philippe Waechter, Chief Economist, Natixis Asset Management looks at the market implications of a “Frexit”: “Currency would be at the very crux of the new framework that France would need to set up. The central bank would lose its independence and would be used as an instrument to finance state spending. In other words, the […]

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Economy-wide spending picks up pace

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Commonwealth Bank Business Sales Index The Commonwealth Bank Business Sales Indicator (BSI) – a measure of economy-wide spending – rose by 0.6 per cent in trend terms in March – the strongest growth in 15 months. Growth had averaged just 0.2 per cent over the prior 5 months. The annual trend growth in sales rose […]

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What if dwelling prices were included in the CPI?

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House price cycles are not captured in the CPI because the cost of land is excluded from the consumer basket. The CPI is a poor barometer of changes in the cost of living for people who don’t own a dwelling and aspire to purchase one. Consumer price inflation would look very different in Australia if […]

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Vacancy rates tumble around nation

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Data released by SQM Research this week has revealed vacancy rates tumbled across all capital cities in March, falling to just 1.5% in Melbourne and 1.7% in Sydney, with upward pressure likely to be maintained on rents in the nation’s two biggest cities. Nationwide, the national vacancy rate dropped to 2.3% in March, down from […]

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Luxury vehicle slowdown poses risks for homes

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Consumer confidence; New vehicle sales; CommSec Luxury Vehicle index New vehicle sales: The Bureau of Statistics (ABS) reported that new vehicle sales rose by 1.9 per cent in March – the third rise in four months. Annual sales of SUVs were at record highs. CommSec Luxury Vehicle index: Sales of luxury passenger cars and sports […]

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Keep control

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Developed Asia has been front and centre in the growth of global household sector debt over the last decade, with indebtedness in Australia, Korea, Hong Kong and Singapore now comparable to the world’s most heavily indebted nations (Chart 8). Much of this growth has been underpinned by booming housing markets, which are difficult to control […]

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Australia retains top-ten ranking in FDI Confidence Index as investors eye Asia-Pacific

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Australia has retained its top-ten ranking for the seventh successive year in A.T. Kearney’s Foreign Direct Investment (FDI) Confidence Index. Australia has been ranked 9th in the 2017 edition of the Index, released yesterday. The Index is a forward-looking analysis of how political, economic, and regulatory changes will likely affect FDI inflows into countries in […]

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Weekly market update – week ending 13 April, 2017

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Investment markets and key developments over the past week Investment markets were in “risk off” mode over the last week in response to concerns about North Korea, Syria and the approaching French election. As a result Australian shares gave up most of their gains from earlier in the week and most major share markets declined […]

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