Restart the nukes
The rise of cheap solar cells and scaled wind turbine production displaced new nuclear on price. The Fukushima disaster caused many countries to re-evaluate their existing relationship with nuclear. Hostilities on the European continent have caused countries to shore up their energy mix and nuclear is now returning to vogue – what are the easiest…
Is Australia Caught in a Federal Reserve Vice?
Stock markets and interest rates exhibit a historical inverse relationship The Australian stock market moves in lock and step with the US As the Federal Reserve has attempted to squeeze out inflation through rate rises, the Australian share market has retreated. Is there an end in sight? Through a challenging nine months of Australian equity…
Australia’s labour squeeze
Unemployment among the participating workforce nears its lowest in recorded history Businesses find themselves in stiff competition for the best talent What are the reasons for this current labour shortage, and how can governments and businesses respond? A thinly stretched labour force During the pandemic, many businesses around the world froze or reduced operations. Their…
Investing in the downturn – how to keep your money safe this winter?
Rising global benchmark interest rates are spooking investors as they bear witness to policymakers’ attempts to deflate their holdings. Investors are looking to keep their investments safe this winter. What are some of the best investment strategies to keep your money safe during an economic downturn? The international company earnings outlook is beginning to sour,…
The shifting tide of the global economy
Global inflation is sky-high, and recessionary signals are on the rise. US GDP for Q2 2022 is published Thursday as a curtain raiser to the central banker’s annual Jackson Hole Symposium. International central bankers, Federal Reserve officials, other policymakers, and academics meet annually to discuss the economy. Will they be able to stave off an…
As European Inflation Sets New Records, What Does This Mean for Australia?
European inflation is hovering at all-time highs Russian gas displacement from European markets is sending energy costs soaring Europe is Australia’s second-largest trading partner
The inflation and employment relationship
The inflation and employment relationship Australian unemployment in participating workforce continues to slide CPI and wage inflation will continue to be fuelled as we near full employment What are the likely outcomes of moving toward full employment and policymaker responses? The current state of affairs The Australia Bureau of Statistics (ABS) publishes a…
The immovable market
US unit labour cost rises for Q2 came in above 10% for the second quarter in a row. Westpac consumer confidence for August is down by 3%. Key US and European inflation data is out later today – what will it take to shift the market from this tight trading range? High prices remain US…
China’s zero-COVID approach and your wallet
China’s oil imports remain low as COVID-19 restricts internal movements. Daily imports in July are hovering around a 47-month low. As the world’s oil markets remain tight and inflation is running rampant, China’s reopening deferrals are going a long way toward turning an inflation tsunami into something a little more manageable. Oil price backdrop Oil…
Good times for the banks roll on
Unemployment is currently at record lows. The RBA is raising rates very quickly relative to the past. A robust customer credit quality position due to high employment and higher margins are painting a rosy picture for the financial sector. The big four The Australian finance sector is denominated by the ‘big four’ banks: the Commonwealth…
