Weekly market & economic update Friday 08 October 2010

Headline developments of the past week The Reserve Bank of Australia surprised many by leaving interest rates on hold, but it made it quite clear that it retains a tightening bias, stating that if the outlook unfolds as it expects then higher interest rates will likely be necessary at some stage to ensure that inflation […]

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Asian and Australian bond markets hold strong opportunities for investors, Western Asset says

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‘Kangaroo effect’ sees Australia as destination of choice for foreign issuers Asian bonds more attractive as governments put their houses in order As fears of a sell-out of fixed interest assets build, investors should look beyond large developed bond markets, to Asia and to Australia, for less volatility and potentially higher returns, according to Legg […]

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More than 50% of investors intend returning to commercial property investment, says Charter Hall survey

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Most investors intend to increase their exposures to listed and unlisted property over the next year, and will invest sizable sums, according to the findings of a new Charter Hall Group (ASX: CHC) Investor Forum survey. In a sign of renewed confidence in the sector following the GFC, the survey of nearly 400 Self Managed […]

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SMSF Use of Sector ETFs Likely to Follow the Success of Broader Passive Investments

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For the first time in Australia, investors can take a view on a particular market sector such as Resources, Financials or Energy. With a sector ETF, investors can simply buy the sector, rather than the individual stocks, and gain an appropriately weighted interest in all the securities within that particular index.  ‘By investing in a […]

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Russell’s super administration model focused on members

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Russell introducing intra-fund advice to support its member engagement strategy More than 70 staff accepted roles to join Russell’s administration business Global financial services firm Russell Investments announced it is set up to aggressively compete for new administration business. In May 2010 Russell announced that it would transform its Australian Member Administration Centre – currently […]

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Bubble trouble – the next global asset bubble

Key points Asset bubbles are a fact of life and flow from human nature which has a strong tendency to jump on to popular fads. There is a long history of new bubbles forming from the ashes of the last burst bubble – and this time around is unlikely to be any different. Easy global […]

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AMP and Bendigo Bank form strategic alliance

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AMP Financial Services and Bendigo Bank today announced a strategic alliance to deliver tailored AMP life insurance solutions to the bank’s 1.35 million retail customers across Australia. From October this year, AMP Flexible Lifetime Protection will be rolled out to Bendigo Bank’s 460 branches. AMP Director Product Manufacturing Paul Sainsbury said the alliance with Bendigo […]

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Healthy trade; petrol prices to creep higher

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International trade; Job advertisements; Petrol price The trade surplus widened in August. The trade surplus rose by $603 million to $2,346 million. Exports fell by 2.4 per cent while imports fell by 5.1 per cent. Petrol prices are set to rise – but modestly. Terminal gate or wholesale petrol prices hit fresh 11-month lows last […]

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AMP Capital exits joint venture with Meridien Retirement Living

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AMP Capital Investors today announced it has exited its joint venture with Meridien Retirement Living. The joint venture AMP Capital Meridien, established in 2007, comprised 25 retirement villages in Australia. AMP Capital has undertaken a strategic review of its retirement assets over the last 18 months. Following a difference in strategic direction, both parties agreed […]

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Good inflation data to cheer Reserve Bank

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Inflation gauge The TD Securities-Melbourne Institute monthly inflation gauge rose by just 0.05 per cent in September – the lowest increase in 11 months – after lifting 0.2 per cent in August and 0.1 per cent in July. Importantly other underlying rates of inflation were also benign in September. The trimmed mean was unchanged for […]

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