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Senate Affordable Housing Report debuts

May 9, 2015 - 10:15 -- Admin

The long awaited Senate Affordable Housing Report – 8 May 2015 was released late on Friday afternoon.  It is a very large (496 pages) pdf file. h/t Patrician & Stomper The nature of these things is for a lot of very interesting information, assumptions, biases and quotes to be buried deep in the various sections, with the

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ASX at the close

May 8, 2015 - 16:00 -- Admin

by Stan Shamu The selloff in the bond market finally came to a halt despite some early jitters and this played a big role in stabilising equities. While equities have been drifting higher in Asia, perhaps most of the attention was on the UK elections which dictated the pace in the sterling. With the uncertainty

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Getting the long bond wrong

May 8, 2015 - 14:58 -- Admin

From Chris Joye at the AFR: Tuesday’s otherwise unexpected (at least by most) jump in long-term rates was determined by much larger foreign forces. A little appreciated fact is that Australia’s three- and 10-year government bond yields, which are the market’s best guess as to where the cash rate will be on average over those periods,

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Pound pops on imminent Tory victory

May 8, 2015 - 14:47 -- Admin

by Chris Becker The Pound is surging this afternoon with imminent victory by the incumbent Conservative Party (Tories) overnight in the UK general election: Its a new high for the year and eclipses the pre-Scottish referendum rout that saw it reach 1.45 against the USD. The FTSE opens in a few hours and The City

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Big iron holds up as futures rebound

May 8, 2015 - 14:25 -- Admin

The Aussie dollar, bond markets and Australian shares are all thriving on poor China trade. Even big iron has held up well though BHP is being whacked on a building oil correction, down 1.5%. RIO and FMG are flat. To the indexes: Idiocy spreads are stable: Juniors: Dalian futures have bounced strongly on lousy Chinese

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Bill Evans: RBA easing bias intact

May 8, 2015 - 13:54 -- Admin

From Bill Evans at Westpac: Growth to December 2015 is forecast at 2.5% compared to 2.75% in the February Statement and forecast growth to December 2016 has been lowered from 3.5% to 3.25%. These changes are in accordance with our expectations and of course provide convincing justification for the decision to cut rates by 0.25%

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China trade tanks again

May 8, 2015 - 13:48 -- Admin

China has released its April trade numbers and it’s more bad news with exports down 6.4% versus 1.6% expected , imports down 16.2% versus 12.2% expected: Leading to a trade surplus of $39.6bn:   There is really very little to support the contention that there is a current Chinese rebound of any strength. Markets hardly moved,

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Millionaires club profit jumps

May 8, 2015 - 13:42 -- Admin

  by Chris Becker The fifth pillar in the Australian banking sector, Macquarie Group (MQG) announced its 2nd highest profit result ever (yes, the other one was before the GFC). Here are the juicy details: net profit up 27% to $1.6 billion operating income up 14% to $9.3 billion operating expenses up 12% to $6.8

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Garnaut questions climate policy

May 8, 2015 - 13:30 -- Admin

Cross posted from The Conversation: Following the repeal of the carbon tax, the Australian government has implemented its Direct Action climate policy, centred on the A$2.55 billion Emissions Reduction Fund. The results of the fund’s first auction were released on April 23. So far, the government has signed contracts for 47 million tonnes of carbon

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The effects of LNG on the terms of trade

May 8, 2015 - 12:19 -- Admin

The RBA’s SoMP offers a deeper dive into the impacts of LNG on the terms of trade: Over the past decade, movements in Australia’s terms of trade – the ratio of export prices to import prices – have been driven by movements in the prices of commodities, particularly of bulk commodities such as iron ore

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