Economics

The RBA has done as much as it can, now it’s up to the government

Last week Reserve Bank of Australia Governor Philip Lowe, and his top lieutenants, appeared before the House of Representatives Standing Committee on Economics. This time-honoured tradition goes roughly as follows. The governor makes an opening statement that contains nothing not said before in public. Committee members then take turns trying to trick the governor into…

Why Australian corporate chiefs are paid so well

The annual chief executive pay report produced by the Australian Council of Superannuation Investors is a must-read for shareholders and members of superannuation funds. The latest report, relating to the financial year that ended in 2019, reveals a new record for the money actually paid in one year, so-called realised remuneration, of AU$37.7 million. The…

HomeBuilder might be the most-complex jobs program ever devised

HomeBuilder is a good idea gone bad. It is possibly the most complex and least equitable program the government could have devised to deliver construction jobs. It gives $25,000 to people who already own a home or already have enough money to buy one while delivering a minimal stimulus to extra construction. It isn’t a…

Investor Signposts 10 Feb 2020: Quiet week ahead

Australia: Quiet week ahead In the coming week, there is only a spattering of economic indicators. Main interest will be on the profit-reporting season. On Tuesday, there are three indicators to be released. ANZ and Roy Morgan issue the consumer sentiment index for the week ended February 9. The National Australia Bank issues the January…

How Much Crude Oil Do You Unknowingly Eat?

You may think (or hope) that in your daily life you don’t need to worry about unknowingly eating or otherwise ingesting crude oil or any of its many, many petrochemical byproducts. But you would be wrong. And not just a little wrong–very, very wrong. Petroleum-based substances are in all kinds of innocuous-seeming things that we…

Jobs ads ‘fall for 12th straight month’

Job advertisements fell for the 12th straight month in April to remain at levels consistent with rising unemployment for the year ahead, a survey shows. The ANZ survey found the total number of job ads in newspapers and on the internet fell 7.5 per cent in April, to an average of 136,770 per week. Job…

Jobs ads ‘fall for 12th straight month’

Job advertisements fell for the 12th straight month in April to remain at levels consistent with rising unemployment for the year ahead, a survey shows. The ANZ survey found the total number of job ads in newspapers and on the internet fell 7.5 per cent in April, to an average of 136,770 per week. Job…

‘Biggest’ house price fall in 23 years

Australian house prices recorded the biggest annual fall in 23 years in the year ended March, with an improvement unlikely in 2009, economists say. Sales prices for established houses fell 6.7 per cent in the year, the Australian Bureau of Statistics (ABS) reported on Monday. It was the biggest annual fall since the data series…

IMF warns over China’s ‘dangerous’ debt load

China’s dependence on debt is growing at a “dangerous pace” and it must act to head off a brewing crisis in the world’s second largest economy, the IMF warned Tuesday.The International Monetary Fund also said the country’s leaders should kick on with vital reforms or risk a painful correction, adding that Beijing’s “unsustainably high” growth…

Investor Signposts: Week Beginning January 18 2016

Craig James – Chief Economist – CommSec#FOTO:306864006:400#Chinese economic data the highlight·       A mixed bag of Australian economic indicators is scheduled over the coming week including gauges of inflation and consumer confidence and lending.·       The week kicks off on Monday with the release of the monthly inflation gauge and new…