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Reserve Bank confirms recession as households crushed

May 29, 2023 - 15:00 -- Admin

The Reserve Bank of New Zealand’s latest Statement of Monetary Policy tipped the economy would fall into recession in 2023. “While economic activity in the last quarter of 2022 was weaker than expected, further economic contraction during 2023 remains possible”, said the Reserve Bank. “The level of GDP is assumed to decline over 2023, but to

Australia’s housing market is red hot

May 29, 2023 - 14:30 -- Admin

Preliminary data from CoreLogic shows that Sydney’s residential auction clearance rate rose to 78.5% in the week to Saturday, which was its equal best result since February 2022. Melbourne’s preliminary clearance rate rose to 77.1% – the seventh consecutive result above 70%. Whereas the national preliminary clearance rate rose to 75.9%, which is its highest

Monster coal crash continues

May 29, 2023 - 13:30 -- Admin

The monster coal crash continues with no end in sight. Coking coal is now trading at $226 down from peaks above a preposterous $600.  Thermal coal is at $133 down from peaks around $450. This is crazy the Ukraine War commodities mania got. And there is no end in sight. For thermal coal, $133 is

X-date boom or bust?

May 29, 2023 - 13:00 -- Admin

Morgan Stanley with the note. Reports suggesting that the debt ceiling drama is inching toward a compromise agreement are good news indeed. The details emerging are still tentative,a final agreement is not yet in hand and,given the fraught state of politics in Washington, DC, legislative passage is not assured. That said, with the ‘X-date’ (when

Stop lying. Australia’s housing shortage is immigration driven

May 29, 2023 - 12:30 -- Admin

The AFR View has taken gaslighting on Australia’s housing shortage to a new level with the following tripe: “Australia’s housing affordability crisis is due to the supply side, stupid!” “Dr Richards’ research, published in The Australian Financial Review on Monday, shows that in the 20 years before 2001, the supply of new homes grew by

QLD coal royalty hike a budget bonanza

May 29, 2023 - 12:00 -- Admin

In last year’s state budget, the Queensland Government shocked the coal industry by stealthily hiking royalties. It included a top tier of 40% for coal prices above $300-a-tonne. The changes were in response to the Russian Invasion of Ukraine, which sent coal prices soaring and generated record profits for coal miners. In response to the

US rate hikes to continue

May 29, 2023 - 11:40 -- Admin

As the AI bubble in equities drives late-cycle economic activity, the US Federal Reserve will have to resume rate hikes. Friday’s Personal Consumption Expenditures were very strong and there are other signs too. Wells Fargo has more. Economic Resilience on Full Display in April Today’s durable goods and personal income & spending reports share a

Woke RBA still has no idea about wages

May 29, 2023 - 11:20 -- Admin

The governor of the Reserve Bank of Australia, Philip Lowe, reportedly engaged in a series of heated arguments with federal Labor MPs last week. The RBA governor warned them that the large salary increases they were backing would make inflation worse unless they were accompanied by increases in productivity. Ahead we have the Fair Work

Build-to-rent is no “housing policy silver bullet”

May 29, 2023 - 11:00 -- Admin

Last month, an Ernest & Young report, commissioned by the Property Council of Australia (PCA), claimed that providing federal budget support for build-to-rent (BTR) housing could result in an additional 150,000 homes over the next 10 years. “The potential to create 150,000 homes over the next 10 years with just one asset class shows build-to-rent