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CommSec Morning Report Thursday

Latest news • In US economic data, the ADP employment report shows jobs rose by 128,000 in May (survey: 300,000). New claims for unemployment insurance fell from 211,000 to 200,000 in the past week (survey: 210,000). According to Challenger, job cuts fell from 24,286 to 20,712 in May (survey: 26,000). Factory orders rose by 0.3%…

Jobs growth builds case for a rate hike

The better-than-expected job print reported yesterday was not a surprise. The huge fiscal and monetary nuclear bombs thrown at the economy during consecutive lockdowns have done their job. In fact, they’ve probably been too effective in that we now have a problem that things are improving much quicker than expected. Australia’s record-low unemployment is not…

Reserve Bank warning on cautious spending

CANBERRA, AAP – Australia’s sharp recovery from last year’s recession is expected to have extended into the early months of 2021. But a Reserve Bank of Australia official has warned the rebound may not be as robust if households and businesses show the same caution as they did following the Global Financial Crisis. Forecasts for…

Concern over $40m Indigenous water funding

CANBERRA, AAP – Indigenous groups have raised concerns the Morrison government is considering spending $40 million earmarked for water rights on other uses. The coalition promised in 2018 to create the fund designed to allow First Nations people in the Murray-Darling Basin to buy water for cultural and economic benefit. Earlier this year, Water Minister…

Treasurer tries again with Facebook boss

CANBERRA, AAP – Treasurer Josh Frydenberg will have another phone conversation with Facebook founder Mark Zuckerberg to try to resolve issues around the government’s media bargaining code. The social media giant shows no sign of backing down after banning access to news and information pages across Australia in response to the code. Mr Frydenberg said…

Overseas arrivals keep pressure on states

CANBERRA, AAP – New figures show almost 1000 people entered Australia from overseas every day in November. Despite Australia’s international borders being effectively closed due to COVID-19, almost 30,000 people arrived over the month, new data from the Australian Bureau of Statistics shows. The total included 7570 short-term overseas arrivals – the most since March…

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Japan has trailblazed on economic stimulus, to not much avail

Will Japan under Suga try the reflationary option Abe didn’t? In 2006, 52-year-old Shinzō Abe of the almost-always-in-power Liberal Democratic Party became Japan’s youngest-ever prime minister. In 2007, however, the son of a foreign minister and the grandson and grand-nephew of prime ministers resigned due to ill health. Abe recovered soon enough. In 2012, the…

Is a flood of liquidity entering markets?

As interest rates creep lower and asset-buying programs expand, contrarian investors have been steamrollered by liquidity and momentum. Yet abundant liquidity and plausible storytelling can only sustain markets for so long, and every story needs an ending. We prefer to leave expensive technology businesses to others, while focusing on neglected long-duration businesses with proven earnings…

Job vacancies and retail spending well off the lows

Job vacancies and retail spending well off the lows Retail trade; Regional jobs; Job vacancies ¾ Retail trade: ‘Preliminary’ retail trade fell by 1.5 per cent in September after falling 4.0 per cent in August. Retail spending is still up 5.2 per cent on the year. ¾ Regional payrolls: The Australian Bureau of Statistics (ABS)…