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Federal Court stomps on Adani coal monster

August 5, 2015 - 11:10 -- Admin

From The Guardian this boondoggle can’t catch a trick: The federal court has overturned the Abbot government’s approval of Australia’s largest proposed coal project, Adani’s Carmichael mine in north Queensland. The court has ruled environment minister Greg Hunt ignored his own department’s advice about the mine’s impact on two vulnerable species, the yakka skink and

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PC offers sensible reform to workplace laws

August 5, 2015 - 11:01 -- Admin

By Leith van Onselen The Productivity Commission (PC) has released its draft report into Australia’s workplace relations framework, which recommends a few minor renovations to workplace laws to provide greater flexibility to the workplace. Most importantly, the PC finds that Australia’s workplace relations system is mostly sound, noting that “Australia’s recent labour market performance does

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MS: RBA will still cut in November

August 5, 2015 - 10:55 -- Admin

From Morgan Stanley: Retain Cut in November – Housing Market Crucial:Whilethestatement was less dovish on thecurrency, weretain our view thatanother ratecut will be necessary to support GDP growth over FY16, whereat 2.3% wesit well below the RBA’s last-published growth forecast of 2.9% (with updates to be released on Friday). In particular, weareclosely monitoring theeffect of macro-prudential tightening and investor mortgagerepricing

Goldman: Property 36% over-valued

August 5, 2015 - 10:39 -- Admin

From national treasure Tim Toohey at Goldman Sachs: Lower potential growth implications for asset prices and tax We deploy the Gordon Growth model to test the impact of lower potential growth. We find that the equity market has not yet lowered its implied perpetuity growth rate and that lowering ‘potential growth’ by 75bps would lower

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Why is APRA letting Genworth pay a special dividend?

August 5, 2015 - 09:53 -- Admin

From The Australian: Genworth Mortgage Insurance Australia has urged the Abbott government to adopt the recommendations of the Financial System Inquiry, after reaffirming its full-year growth target and flagging a special dividend for shareholders as part of its interim results. In the six months to June 30, Genworth (GMA) delivered a net profit of $113.05

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Budget and bubble bounce PSI

August 5, 2015 - 09:28 -- Admin

From the AIG: The services sector expanded again in July 2015, and more strongly than in June. The seasonally-adjusted Australian Industry Group Australian Performance of Services Index (Australian PSI® ) increased by another 2.9 points to 54.1 points this month, its highest level since February 2014 (readings above 50 points indicate expansion, with the distance

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Inside China’s property bust

August 5, 2015 - 09:26 -- Admin

By Leith van Onselen Find above an interesting video report aired on ABC’s The Business yesterday, taking a look inside China’s real estate bust, whereby years of over-building have left a huge glut of homes and commercial properties, along with falling prices, across many of China’s smaller cities. While watching the video, consider how much

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S&P tells us to build without money

August 5, 2015 - 09:20 -- Admin

From the Standard and Poors submission to Australia’s Senate Inquiry Into Infrastructure Financing And Government Expenditure: Infrastructure is a high priority for global leaders focused on promoting global economic growth, as “one of the few remaining policy levers available to support growth, given already accommodative monetary policy”. • Infrastructure investment offers the potential for a significant

ACOSS charts fairer path for retirement policy

August 5, 2015 - 08:47 -- Admin

By Leith van Onselen The Australian Council of Social Service (ACOSS) has released its submission to the Government’s retirement income review, which charts a fairer path for retirement policy by calling for “structural reform of inefficient tax breaks for superannuation to improve retirement incomes for the majority while helping to fund future growing needs in

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