Qingdao iron ore fell a little to $95.82. SGX and Dalian were weak overnight. Last week, we passed some tipping point for steel. Chinese exports have stalled and with them HRC demand: Both rebar and HRC futures are in free fall: The weakness has crushed steel margins: So, steel output is tanking: Iron ore destocking
In this weekend’s Treasury of Common Sense on Radio 2GB, I discussed the latest furore between RBA governor Michele Bullock and the federal government over inflation. I also discussed the lies and obfuscation permeating Australia’s international education “industry”. Below are highlights of the discussion around international students. Edited Transcript: One of the biggest drivers of
DXY firmed Friday night: AUD faded: North Asia was strong: Oil too: Dead dirt bounce: Miners too: Schitzoid EM: Junk is trying to base: Yields rolled: Stocks meh: Goldman says the DXY falls are overdone: Recent Dollar depreciation is understandable given the shifting recession odds in the US, building evidence that restrictive policy has helped
ANZ has the chart. RBA cash rate futures are pricing four rate cuts through 2025, the fewest anywhere thanks to Alboflation: I agree that the Aussie easing cycle will start more slowly than elsewhere but it will catch and overtake in due course. As China fades way, commodity prices continue to collapse. The following chart
CBA economists Gareth Aird and Stephen Wu estimate that the household savings war chest accumulated over the pandemic will be largely exhausted by the end of 2024. As a result, “the boost to consumer spending power in 2024/25via the 1 July 2024 tax cuts will be partially offset by the decline of the tailwind on
International Reads: US Mortgage Rates Tumble to 6.55% in Biggest Drop in Two Years – Yahoo 40% of Americans Now Worry They Can’t Pay Their Bills – Franknez The mystery of Argentina’s gold: Milei admits that it was transferred abroad, without specifying the quantities or destination – Elpais Dell reportedly cuts over 12,000 jobs as
Asian share markets are having some good positive sessions to end a quite volatile trading week but other risk markets also reducing in volatility again today. Yen is weakening again to alleviate some pressure on Japanese equities but could be shortlived as the Australian dollar also fails to get back above the 66 cent level.
He’s the orator of the century: Former Labor prime minister Paul Keating has lashed out at the current government, once again criticising the endlessly-debated AUKUS defence pact. Appearing on the ABC’s 7.30 program last night, Keating called the Albanese government a “sellout”, declaring: “In defence and foreign policy, this is not a Labor government. This is a party which
The Australian Bureau of Statistics (ABS) estimate of population growth, gleaned by Justin Fabo from the per capita retail trade estimates, remained turbo-charged at 2.5%: This suggests that the demand-supply imbalance in Australia’s housing market will have widened, increasing the cumulative housing shortage. As a result, home prices have risen to record highs and rents
CoreLogic’s latest housing chart pack notes that the monthly pace of rental growth eased to its lowest since August 2020, with rents rising only 0.1% in July: Results varied across the capitals, with rents rising in Adelaide (0.6%), Melbourne (0.3%) and Perth (0.3%), flat in Darwin and Canberra, and falling in Sydney (-0.1%), Brisbane (-0.1%)