Cutting the petrol tax and other budget things
Cutting petrol tax to bring down the cost of living used to be the political version of a joke. Failed US presidential candidates John McCain and Hillary Clinton both tried it in 2008. Their bipartisan advocacy of a “summer gas tax holiday” was derided as dumb, a turkey and a “metaphor for the entire campaign”….
How climate solutions could cut our energy bills
How climate solutions could cut our energy bills Tensions in the Ukraine and the threat to Europe’s gas supply are the latest chapter in the saga of volatile energy prices. For many policymakers, this will reinforce long-held concerns about the vulnerability of fossil fuel imports. But more immediately, it exacerbates the cost of living crisis….
US stocks score third day of strong gains
Will it be a case of ‘3 strikes, you’re out and back down we go? Or is something far more interesting happening? Last year we saw US fund managers starting to sell into the rally too early, only to watch the market climb, even on the back of negative economic data and events. At the…
Stocks clear the first Fed hurdle magnificently as inflation lurks
The US Federal Reserve raised interest rates just 25 points in the first of what will be a strident rate hike cycle. Expect the Fed to raise interest rates at every meeting for the rest of this year. Especially, if it is going to move in baby steps. Entirely inappropriate for the hurtling speed of…
Fed hawkish,but cease-fire trades are the rage
MARKETS: US equities were stronger Wednesday, S&P up 2.2%, Europe’s Stoxx600 up 3.1%. US curve flattened: US10yr yields up 3bps, 2yrs up 8bps as Fed dots lean hawkish. Oil down 2.1%. So clearly, cease-fire trades are the rage. The FOMC was interpreted as hawkish, but expectations ran high for that scenario. Perhaps getting the event…
All eyes are looking toward the March FOMC meeting
Markets Asia looks to open higher after US equities found some early footing on Tuesday, despite the widespread weakness overseas, which helped fuel a broad rebound ahead of Wednesday’s FOMC announcement. Volumes were understandably light, along with a low appetite to outlay new risk into today’s main event. The SPX buy the dip thesis could…
Why cutting the fuel excise could harm energy security
Australian petrol prices are rising as Russia’s invasion of Ukraine pushes up global oil prices. It’s likely motorists will be paying more than $2.15 a litre for unleaded petrol within a few weeks. In response, independent South Australian senator Rex Patrick has called on the federal government to halve the fuel excise on petrol for…
Stealth tax rises are eating into your income
A curious feature of the Australian tax system is “bracket creep”. Taxpayers whose income climbs by no more than prices (inflation) get no increase in their living standards. Instead, they see more and more of their income pushed into their highest tax brackets, or to even higher tax brackets. It means the government’s income from…
Central banks face a difficult choice
With Russia and Ukraine at an impasse, commodity prices are surging and the risk of stagflation increases. Given the challenging backdrop, we remain defensive, liquid and focused on managing downside risk and preserving capital. Recent news has been dominated by the conflict in Ukraine. This is a humanitarian crisis, and our hearts go out to…
Investing mistakes during a crisis
Two things surprised me last Thursday morning that should not have done. The first was that Heathrow in February is around 20 degrees colder than Cape Town. I was not correctly dressed. The second thing I learned when my phone reconnected at Terminal 5 was that Russia had invaded Ukraine. Again, I might have expected…
