Economics

Record job vacancies won’t lead to higher wages

Job vacancies in Australia are at a record level. The Australian Bureau of Statistics’ job vacancy rate, measuring the proportion of available jobs currently unfilled, is now more than 2.5% – the highest level since the series started in the late 1970s. This statistic gives weight to all the anecdotal talk about labour shortages in…

Investor Signposts: Week Beginning 22 November 2021

Australia: Spotlight on business investment and construction data · In the coming week, there are a couple of indicators to be released that are key inputs into the September quarter economic growth (GDP) calculations – business investment and construction work activity. · The week kicks-off on Tuesday when ANZ and Roy Morgan jointly release the…

Investor Signposts: Week Beginning 15 November 2021

Australia: Reserve Bank and wages data dominates In the coming week, the Reserve Bank dominates the Australian financial markets calendar. And the main economic data to watch is the Wage Cost Index on Wednesday. The week kicks-off on Monday when the Australian Bureau of Statistics (ABS) releases industry multi-factor productivity data. One for the purists….

Vital Signs: Marketing is getting in the way of markets

This week the prime minister entered full marketing mode. Scott Morrison’s topic was climate change and his plans to get to net-zero. At the Victorian Chamber of Commerce and Industry on Wednesday, he tried out a few slogans. Among those he test marketed: can do capitalism, not ‘don’t do governments’ no one passed a law…

Will Australia see a volatile recovery?

The rotation to an economic recovery favouring value stocks continues but risks loom on the horizon. Perpetual’s Head of Equities, Paul Skamvougeras, looks at the lessons learnt from reporting season and the trends he expects to see as NSW and Victoria reopen. A strong August reporting season for our portfolios vindicated many of our positions….

Investor Signposts: Week Beginning 18 October 2021

Australia: Dominated by Reserve Bank events In the coming week, Reserve Bank events dominate the diary. The week kicks-off on Monday with panel participation by Alexandra Heath, Reserve Bank Head of International Department, at AusPECC Webinar Series (online). On Tuesday, ANZ and Roy Morgan jointly release the weekly consumer confidence index. Also on Tuesday, the…

Understanding the global energy crisis

Far from emerging from the COVID shock awash with fuel, as might be expected after an economic slowdown, the world is entering a new energy crisis the like of which hasn’t been seen since the 1970s. European and Asian gas prices are at an all-time high, the oil price is at a three-year high, and…

Ransomware is so rife it’s a threat to national security

Cracking down on cryptocurrencies might ruin the risk-reward calculation for criminals. Tobias Vernon of the UK owns two small galleries that sell 20th-century ceramics and artworks. Thanks to marketing efforts, the business has almost 50,000 Instagram followers. One weekend in May, an email appeared from Instagram congratulating the business for getting a ‘blue tick’, which…

Investor Signposts: Week Beginning 11 October, 2021

Australia: Jobs data dominates In the coming week, there is plenty for investors to watch, including a speech from the Reserve Bank Deputy Governor, the September jobs data and business and consumer sentiment surveys. The week kicks-off on Tuesday when ANZ and Roy Morgan jointly release the weekly consumer confidence index. Also on Tuesday, the…

Vital Signs: Evergrande potentially on verge of collapse

A large, financially interconnected company is on the verge of collapse, weighed down by massive debt. The government ponders a bailout. There’s no easy answer. Doing nothing risks serious financial upheaval. But bailing it out will signal that greed, irresponsibility and moral hazard have no consequences. It’s a tough call. And if this all sounds…