Investors should take advantage of further volatility in high yield markets

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Global high-yield markets are tussling between trying to gauge the extent of lockdown-driven global economic malaise on the one hand, and the positive impact from enormous stimulus measures that have been announced around the world, on the other. Stephen C. Concannon, Co-Director of High Yield Bonds Portfolio Manager, Jeffrey D. Mueller Co-Director of High Yield... Read more continue reading

Green shoots of recovery?

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Consumer confidence; Spending data; Weekly payrolls; Reserve Bank Consumer confidence: The weekly ANZ-Roy Morgan consumer confidence rating rose by 2.2 per cent to 92.3 points. Sentiment has lifted for seven straight weeks and is up 41.4 per cent since hitting record lows. Survey of payrolls & wages: The Bureau of Statistics (ABS) reported that between... Read more continue reading

Weekly market update – week ending 15 May, 2020

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Investment markets and key developments over the past week Global share markets pulled back over the last week on worries about “second waves”, the economic outlook and tensions with China. Australian shares were hit too with concerns about trade tensions with China and worries about the banks but good gains in materials, telcos and health... Read more continue reading

China’s economy on the mend

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Chinese economic data Retail sales fell at a 7.5 per cent annual rate (consensus: -6 per cent) in April after declining at a 15.8 per cent annual rate in the year to March. Industrial production rose at a 3.9 per cent annual rate in April (consensus: +1.5 per cent) – the first expansion this year... Read more continue reading

Historic day for Aussie job market

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Labour force Employment fell by 594,300 in April – the biggest monthly decline in jobs on record. Full-time jobs fell by 220,500 and part-time jobs fell by 373,800. The unemployment rate rose from 5.2 per cent to 6.2 per cent in April – the biggest lift on record. It was the highest jobless rate since... Read more continue reading

The coming surge in Australia’s budget deficit and public debt due to coronavirus – can we afford it?

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Key points Australia’s federal budget deficit is expected to peak at around $200bn in 2020-21, or around 10% of GDP which will be the highest since the end of WW2. This will see net public debt nearly double as a percentage of GDP over the next few years. However, the budget stimulus is necessary to... Read more continue reading

The COVID-19 recession is here – what next?

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A unique recession  “This recession is unique in that it’s deeper, with a much bigger loss of GDP: We’re not visiting restaurants, gyms, or airports less frequently … we’re not going at all! “The recession will be selective in who it hurts: this is a small business recession concentrated in service industries. Manufacturers are holding... Read more continue reading

Weekly market update – week ending 8 May, 2020

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Investment markets and key developments over the past week Share markets mostly rose solidly over the last week as progress continued in reopening economies supporting perceptions that economic activity may have passed the worst. Eurozone shares were the exception though and fell as they played catchup to falls in US shares a week ago. Australian... Read more continue reading

CTRL-ALT-DEL: Rebooting the economy

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Economic trends National Cabinet to meet: National Cabinet will meet on Friday and top of the agenda will be plans to re-open the economy after a period of hibernation. Stimulus and support measures: Federal, state and territory governments and the Reserve Bank have outlined measures totalling over $340 billion or 17 per cent of GDP.... Read more continue reading

The Lucky Country – three reasons why Australia may come through this period of global misery better than most countries

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Key points Australia has performed better than many countries in “controlling” coronavirus, it has a stronger economic policy response & its major trading partner is 2-3 mths ahead of the rest of the world into economic recovery. If, as a we expect, this results in a relatively stronger recovery for the Australian economy, then Australian... Read more continue reading