The Reserve Bank of New Zealand (RBNZ) yesterday released its bi-annual Financial Stability Report (FSR), which stated that the nation faces its sharpest economic contraction in 160 years: In New Zealand, border closures and economic lockdowns have led to an unprecedented decline in economic activity. Even accounting for an expected recovery in the second half
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Apologies for lateness today. Been wrestling with a Telstra bot all morning. Iron ore prices for May 27, 2020: Not much in news. Here’s the latest steel inventory chart: Looks impressive but it isn’t. Seasonally-adjusted the stock is just as high as it was at its peak. The reasons why is that demand remains relatively
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The record surge in March retail sales on the back of panic buying of groceries, alongside the smaller than expected fall in construction, won’t be enough to save Q1 GDP, according to economists: Westpac’s Andrew Hanlan said the slightly better than expected [construction] figure would not change the view of the bank’s economists that March
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Via the excellent Damien Boey at Credit Suisse: Value bounces hard. Over the past few days, we have seen value factors outperform very sharply. Sectorally in Australia, high yielding banks have led the charge, while healthcare stocks have been the laggards. The bid for resources stocks has also unwound, strangely on concerns about US-China tensions on the one hand, but
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People often say that investors are the marginal price setters in the property market, especially in Sydney and Melbourne. If true, the below story from The AFR will have the property industry concerned, given investors are reportedly set to dump rental properties: One in three renters face housing stress and are at risk of defaulting
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Australia’s universities continue to cry poor over the reduction in international student numbers, signaling heavy financial and job losses: While universities across Australia have different exposures to the coronavirus-induced downturn, revenue is estimated to drop by $3 billion this year collectively. That could cause the loss of up to 21,000 jobs, with 7,000 estimated to
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Callam Pickering, economist at global jobs site Indeed, has provided another update on Australian job postings. According to Pickering, new job postings have more than doubled since their low on 19-April: Total job postings are tracking 51% below their trend last year, but have clearly improved over recent weeks: Pickering has also deconstructed ABS data
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Robert Lechte, a welfare-state advocate living in Melbourne, believes that Australia’s superannuation system “enshrines inequality”: Like other market-based schemes, superannuation has reinforced and accelerated existing inequalities. Because super is primarily funded by employer contributions, it is self-evidently terrible for the unemployed or those out of paid work due to disability, sickness, or caregiving. They earn
Global Macro / Markets / Investing: M2 Money Supply – Am I wrong to be freaked out about this chart? – St Louis Fed Central bank asset purchases creating ‘fake markets’, analyst warns – Financial Post Global stocks rally and break records – CNBC Americas: Canadian Real Estate Prices Expected To Drop Up To 18%
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A mixed mood in Asia despite the orgy of buying still going on in the northern hemisphere with only Japanese stocks advancing on the whiff of more stimulus measures. Meanwhile the Chinese Yuan hit a new low versus USD again, with offshore trading pushing through the 7.17 handle as other majors kept firm against USD
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