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Morrison urges unions, bosses to cooperate

The prime minister has called for workers and bosses to unite on industrial reforms aimed at stimulating productivity after coronavirus. The coalition has signalled workplace laws will be a target reform area on the road to economic recovery once the pandemic subsides. Scott Morrison said Australia’s economic resilience had motivated employers and employees to settle…

$17tn stimulus supercharges markets

In just a few short weeks, the narrative has shifted from how bad things will get to how soon we can recover. Yet the economic data is still horrendous, with the potential for worse to come if the US is hit by a second or third wave of infections. When so much is unpredictable, we…

Renewable Energy in the Post COVID-19 Era

All over the world countries are already or soon will be dipping their toes into the process of lifting “stay at home” efforts. It seems the global consensus, which may be in error, is that COVID-19 is slowly winding down, opening the door to efforts to begin reviving economies crushed by the lockdowns. The financial…

Survival of the Fittest – Iron ore versus Oil

One month ago, the ASX closed its worst trading month in history. One month later, the ASX has closed its best trading month ever. In the US, the Dow Jones Industrial Average (DJIA) recorded its best month in 33 years. Volatility persists, as market sentiment bounces back and forth between enthusiasm over any news on…

Investor Signposts: Week Beginning May 4, 2020

Australia: Reserve Bank on centre-stage A busy week lies ahead with ‘top shelf’ economic indicators due for release with a Reserve Bank Board meeting and quarterly Statement on Monetary Policy. But the week starts on Monday, with a bevy of indicators due for release. The Australian Bureau of Statistics (ABS) issues the March building approvals…

Investor Signposts: Week Beginning April 27, 2020

Australia: Inflation in focus Inflation data dominates in the coming week. Clearly, at present the quarterly data on price changes doesn’t rank highly. Instead, most investors and analysts are dissecting the effects of COVID-19 on the economy. But the week starts on Monday, when CommSec releases its quarterly State of the States report. The ranking…

Virgin Australia receives a lifeline

With commercial airline fleets grounded due to lack of demand, the Australian government will pay the nation’s two biggest airlines, Qantas and Virgin Australia, $A165 million to ensure they keep flying critical metropolitan and regional routes over the next two months. This measure comes on top of a A$198 million assistance package for regional airlines and the…

How COVID-19 is impacting the ASX

COVID-19 hit equity markets around the world swiftly and sharply. Equities, as is often the case in crises, have been characterised by exceptionally high levels of volatility, as increased weightings in illiquid assets have forced many investors to liquidate where they can rather than where is most logical. Recent years have been characterised by complacency…

Will coronavirus cause a recession?

The COVID-19 crisis is affecting economies across the world with education, hospitality, retail, tourism and entertainment sectors majorly impacted by social distancing measures and travel restrictions. As developed markets prepare for an economic slowdown, we answer the questions – will coronavirus cause a recession? The fallout from COVID-19 has led people to wonder what’s in…

Economic shock exposes vulnerable valuations

The continued spread of COVID-19 across the world has administered a shock to the global economy, with material impacts already felt on both the supply and demand side. Yet while central banks and governments appear ready to take further measures, it is not yet clear whether they will be enough to counteract market headwinds. In…