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Articles from MacroBusiness

Macro Afternoon

February 5, 2024 - 17:00 -- Admin

Asian share markets are somewhat positive in the wake of the tech lead rally on Wall Street from Friday night following the latest US non farm payroll print, but also had to absorb the weekend attacks throughout the Middle East. The USD is still strong following the upside surprise in the jobs print with the

Reserve Bank sinks housing market

February 5, 2024 - 13:30 -- Admin

The Reserve Bank of New Zealand was one of the world’s most aggressive central banks, commencing its interest rate tightening cycle in October 2021 and hiking the official cash rate (OCR) by 5.25% over this cycle: As illustrated in the below chart from Justin Fabo at Antipodean Macro, average New Zealand mortgage rates continue to

Pilbara killer approved

February 5, 2024 - 13:00 -- Admin

Another step forward for the Pilbara killer today: Guinea’s National Transition Council approved a joint venture between Rio Tinto Plc, China-backed Winning Consortium Simandou and the government that seeks to develop the world’s biggest untapped iron ore reserve. I expect iron ore to be already dying before then. This will finish it off.

Gaslighting Guardian kills the homeless

February 5, 2024 - 12:30 -- Admin

The progressive propaganda sheet formerly known as The Guardian is up to old tricks again today: Hundreds of Australians experiencing homelessness are dying more than 30 years prematurely in a nationwide crisis fuelled by despair, critical housing shortages, a breakdown in health provision, violence on the streets and failures of the justice system. A 12-month

Aussies pile into investment property

February 5, 2024 - 12:00 -- Admin

Throughout 2023, we saw various headlines indicating that investors were selling their properties, exacerbating the rental crisis by reducing availability. PropTrack Director of Economic Research Cameron Kusher, for example, warned in November that “investors continue to exit the market, which is keeping the overall stock of rental properties low”. Thomas McGlynn, CEO of the Sydney-based

Australia is a productivity sink hole

February 5, 2024 - 11:30 -- Admin

Justin Fabo at Antipodean Macro published the below chart showing that Australia has recorded the lowest labour productivity growth among advanced nations, ahead of second worst Canada: The divergence between Australia and the United States is especially stark, as illustrated in the below chart produced last year by Alex Joiner at IFM investors: As you

US credit recovery continues

February 5, 2024 - 11:00 -- Admin

US bank credit is off and running: Large and small: Yea on year has bottomed: There is a problem ahead. If the Fed does not cut rates in March, it will end its bailout facility for small banks. If it does so there could either be a resumption of deposit outflows or a reduction in

Lower the gas price cap

February 5, 2024 - 10:30 -- Admin

Albo’s idiots are butchering energy again. The local gas spot price remains glued to Albo’s $12Gj price cap: As a result, summer stresses on the grid use more gas: And the price of power soars: If Albo’s idiots lower the cap to $8Gj (even better would be an export levy above $8Gj) they will flood

Middle income trap snaps shut around China

February 5, 2024 - 10:00 -- Admin

The Middle Income Trap is well understood: According to the concept, a country in the middle-income trap has lost its competitive edge in the export of manufactured goods due to rising wages, but is unable to keep up with more developed economies in the high-value-added market. As a result, newly industrialized economies such as South Africa and Brazil have not, for decades, left

State premiers panic on interest rates

February 5, 2024 - 09:30 -- Admin

The independence of the Reserve Bank of Australia (RBA) was thrown into question last week when Labor state premiers ganged up demanding interest rate cuts. Queensland Premier Steven Miles took to social media on Thursday urging the RBA to begin reducing the cash rate immediately to take the pressure off households. “The Reserve Bank needs