Petrol spikes as discounting cycle resumes

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Petrol price; RBA Governor speech Petrol prices have risen for the first time in five weeks. The Australian Institute of Petroleum reports that the average Australian petrol price rose by 3.6 cents a litre last week – the biggest weekly price gain in seven months. The national pump price stands at a 3-week high of […]

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Spending posts first gain in nine months

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CBA Business Spending index Tentative signs of a recovery in consumer spending. A key gauge of economy-wide spending posted its strongest result in nine months in August. The Commonwealth Bank Business Sales Indicator (BSI) rose by 0.1 per cent in the month, the first positive reading since November last year. The Commonwealth BSI is obtained […]

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Melbourne-Sydney: World’s 3rd busiest air route?

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Air traffic data Based on the latest available government aviation statistics, the Melbourne-Sydney air route can claim the mantle of the third busiest route in the world. There were just over 834,000 available seats on the Melbourne-Sydney city pair, pushing it above the Fukuoka-Tokyo route in Japan. Click here to download the document (pdf)

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Investor Signposts: Week Beginning September 19

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Upcoming economic and financial market events Australia September 20    Reserve Bank Governor speech    Foodbowl Unlimited Forum Luncheon in Shepparton September 21    RBA Board minutes (September 7)    Minutes of the last board meeting September 21    ABARE commodity forecasts      ABARE’s ‘Australian Commodities’ publication September 24    Financial accounts (September quarter)    Includes data on household financial wealth Overseas September […]

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Weekly market & economic update 17 September 2010

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Headline developments of the past week Global financial market regulators – known as the Basel Committee on Banking Supervision – announced tougher capital requirements for banks so that they can better withstand future financial crises. However, bank shares actually rose in response as the capital requirements had been anticipated and the time to comply was […]

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Aussies embrace financial stocks

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Reserve Bank Bulletin The Reserve Bank Bulletin released yesterday has provided a breakdown of the ownership of Aussie equities. The portfolio allocations between households and institutional investors differ significantly. Mum and Dad investors hold 65 per cent of their portfolio in financial stocks – more than double the portfolio allocation of institutional investors. The large […]

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Powerhouse mining sector

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Quarterly Labour force data; RBA Speech; Imports In percentage terms, employment in the mining sector expanded rapidly over the past year. In the year to August, mining sector employment grew by 33,000 workers or 20 per cent, significantly outperforming other sectors. Over the three months to August, employment across Australia grew by 78,500 or 0.7 […]

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Are shares good value & what about bank deposits?

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Key points Shares are cheap using forward price to earnings ratios and when comparing the level of the dividend yield to the bond yield. Thanks to low government bond yields and higher dividend yields, shares should provide a good risk premium over bonds for the decade ahead. While Australian bank deposit rates are attractive for […]

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Consumers display caution

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Dwelling starts at six-year Consumer sentiment; New car sales; Dwelling starts The Westpac/Melbourne Institute index of consumer confidence eased in the latest month. The index fell by 5.0 per cent to a three-month low of 113.2 in September. Aussie consumers believe that bank deposits are the wisest place for savings (30.7 per cent of respondents), […]

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Businesses hopeful; Farmers rejoice; Cash is still king

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NAB business survey; ABARE Crop Report; Consumer finances Business confidence is up; conditions are down. According to the NAB business survey, the business confidence index rose from +2.4 in July to +11.2 in August. The business conditions index fell from +5.3 in July to +4.5 in August – the fourth decline in five months. Retail […]

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