Out And About In Wollongong

We recently posted Out and About in Wollongong featuring the Jolly Swagman, in which we examined the state of the local economy. The show was supported by some excellent research from Mitchell Grande, a recent Graduate of Politics, Philosophy, Economics (Honours) at the University of Wollongong – concerned with Australian public policy, and especially energy policy. … Read moreOut And About In Wollongong

DFA Live Property And Finance Q&A 20 Nov 2019 And Updated Scenarios

We ran our regular live event last night. This is the high quality edited edition, including some behind the scenes footage. We discussed our scenarios on property prices and other economic metrics over the next couple of years as well as a range of other important questions from the community. The original recording of the … Read moreDFA Live Property And Finance Q&A 20 Nov 2019 And Updated Scenarios

Westpac Hit By AUSTRAC Court Action

AUSTRAC, Australia’s anti money-laundering and terrorism financing regulator, has taken Westpac to court, alleging the major bank violated anti-money laundering and terrorism regulation on over 23 million occasions. Via Australian Broker. According to AUSTRAC CEO Nicole Rose, the decision to commence civil penalty proceedings came on the back of a detailed investigation into Westpac’s non-compliance. … Read moreWestpac Hit By AUSTRAC Court Action

Mortgage Expense Benchmarks Under The Microscope

The use and regard to expenditure benchmarks is “an area that is ripe for further guidance from ASIC”, and will be a focus of the updated RG 209 guidance next month, the financial services regulator has suggested. Via The Adviser. Speaking at the parliamentary joint committee on corporations and financial services hearing on its oversight … Read moreMortgage Expense Benchmarks Under The Microscope

Reserve Bank Increases Its Supervision of BNZ

The New Zealand Reserve Bank has increased its supervisory monitoring of the Bank of New Zealand (BNZ) and applied precautionary adjustments to its capital requirements following the identification of weaknesses in BNZ’s capital calculation processes. BNZ identified a number of errors while undertaking a programme of remediation, which began in early 2018 and is expected … Read moreReserve Bank Increases Its Supervision of BNZ

Tax Deductible Child Care – A Good Idea?

According to an article in the New Daily today by Samantha Maiden, “Families would be able to claim child care costs of up to $60,000 a year as a tax deduction under a proposal to be launched by Liberal MP David Sharma on Tuesday”. However, the biggest benefits go to families with a combined income … Read moreTax Deductible Child Care – A Good Idea?

Digital Takeovers, Transactions May Harm Consumers: ACCC

Takeovers of smaller rivals by digital platforms, including their data sets, may pose a threat to consumers’ choice and privacy, said ACCC Chair Rod Sims. Mr Sims was speaking at the Consumer Policy Research Conference (CPRC) Conference on the ACCC’s perspectives on consumer welfare in the data economy. “Few consumers are fully informed of, nor … Read moreDigital Takeovers, Transactions May Harm Consumers: ACCC

New Debt Collection Guidelines Released

New guidelines to be applied by Australia’s banks to debt collection agencies have been released today. This voluntary Industry Guideline complements the provisions of the Banking Code of Practice (the Code) set out in Chapter 14 (Customers who may be vulnerable), Chapter 41 (Financial Hardship) and Chapter 43 (Recovering a Debt). This guideline reflects good … Read moreNew Debt Collection Guidelines Released

‘Premium’ SME Borrowers Are Bad News

Underestimating the appetite of premium quality borrowers has led to a revenue downgrade for fintech business lender Prospa and a 28 per cent reduction in its share price. Via InvestorDaily. Prospa shares crashed 27 per cent to a record low of $2.80 on Monday morning following the release of the group’s trading and guidance update. … Read more‘Premium’ SME Borrowers Are Bad News

Big bank CEOs Deny ‘Loyalty Tax’ Accusations

The chief executives of the big four banks have doubled down in defence of their mortgage pricing decisions after being accused of profiting off a “loyalty tax” imposed on customers. Via The Adviser. Appearing before the House of Representatives standing committee on economics on Friday (15 November), NAB chairman Philip Chronican and ANZ CEO Shayne … Read moreBig bank CEOs Deny ‘Loyalty Tax’ Accusations

Why Sweden’s Central Bank Dumped Australian Bonds

Suddenly, at the level of central banks, Australia is regarded as an investment risk. Via The Conversation. On Wednesday Martin Flodén, the deputy governor of Sweden’s central bank, announced that because Australia and Canada were “not known for good climate work”. As a result the bank had sold its holdings of bonds issued by the … Read moreWhy Sweden’s Central Bank Dumped Australian Bonds

Marked Slowdown In Dividends in Q3

A slowdown in global dividend growth is underway, according to the latest Janus Henderson Global Dividend Index (JHGDI). The trend began in the second quarter and continued in the third. Even at their slower pace, dividends are still growing comfortably, however. Australia saw a big decline in dividends, with two fifths of companies in the … Read moreMarked Slowdown In Dividends in Q3

ANZ CEO received remediation from bank

ANZ chief Shayne Elliott has revealed he was sent three remediation letters from the bank, insisting that the company will refund every single customer it has wronged, via Investor Daily. Appearing before a parliamentary committee on Friday, Mr Elliott commented many customers receiving remediation wouldn’t have known there was an issue at the time, pointing … Read moreANZ CEO received remediation from bank

To Infinity And Beyond – The Property Imperative Weekly 16 Nov 2019

The latest edition of our weekly finance and property news digest with a distinctively Australian flavour. Contents 0:20 Introduction 1:05 Live Stream 19th Nov 1:30 US 2:00 US China Trade 2:50 US Economy 3:10 CASS Shipping 4:40 Fed Policy 5:20 US Markets 07:57 Hong Kong 8:25 UK 09:35 New Zealand 11:22 Australian Section 11:23 Employment … Read moreTo Infinity And Beyond – The Property Imperative Weekly 16 Nov 2019

Auction Results 16 Nov 2019

Domain released their preliminary results for today. The latest results continue the high clearance rates, with volumes now tracking closely to those a year ago (when momentum had ebbed away). Canberra listed 66 auctions, reported 54 and sold 39, with 3 withdrawn and 15 passed, giving a Domain clearance of 68%. Brisbane listed 86 auctions, … Read moreAuction Results 16 Nov 2019

ASIC On Responsible Lending

Keynote address by ASIC Commissioner Sean Hughes at the ARCA National Conference, Gold Coast, 14 November 2019 Today I would like to address some of the issues that have been raised in relation to responsible lending and demonstrate two facts.  First, that the concerns are misplaced.  Second, the principles underpinning these provisions remain sound, even … Read moreASIC On Responsible Lending

Trend unemployment rate steady at 5.3%

Australia’s trend unemployment rate remained steady at 5.3 per cent in October 2019, according to the latest information released by the Australian Bureau of Statistics (ABS) today. The unemployment rate increased in the Northern Territory and New South Wales, and decreased in Tasmania. Trend unemployment in October 2019 remained steady at 5.3 per cent, 0.2 … Read moreTrend unemployment rate steady at 5.3%

DFA Highlights Payday Lending Is Driving Australians Into Debt

DFA provided data from our household surveys to inform an important report “The Debt Trap” released by more than 20 agencies helping consumers with their financial pressure. Our research, based on our rolling 52,000 households reveals that more households are using short term loans to try and manage their budgets, but many get trapped into … Read moreDFA Highlights Payday Lending Is Driving Australians Into Debt

CBA Trading Update Sep 19: OK But…

CBA, who is on a different reporting cycle to the other majors, released their trading update to 30th September 2019 today. These are unaudited numbers and included some one-off items, but generally it looks like CBA managed to navigate the complexities of the current market quite well. But its all a matter of relativity as … Read moreCBA Trading Update Sep 19: OK But…

Did The End Of The World Just Get Postponed?

Something happened late last week, which superficially might be attributed to positive news on the US China trade talks (later downplayed by Trump) but it was wider and more significant than that. In recent months many traders have been positioning for a significant market correction, and potentially a US or global recession. Thus, risk stocks … Read moreDid The End Of The World Just Get Postponed?

Does Monetary Policy Work Any More?

In its quarterly statement on monetary policy, released today, the Reserve Bank of Australia declared its preparedness to “ease monetary policy further if needed”. Via The Conversation. This suggests the bank still thinks monetary policy – in this case lowering interest rates to stimulate the economy – could help “support sustainable growth in the economy, … Read moreDoes Monetary Policy Work Any More?

Final Reminder – Harry Dent Will Be In Town Soon

A couple of weeks back I caught up with Harry Dent, the famous economist and author. We discussed the current economic situation, and his view of the potential for an upcoming crash. Here is the show in case you missed it. There is still time, as a valued-add, to secure up to 2 complimentary tickets … Read moreFinal Reminder – Harry Dent Will Be In Town Soon

What I Said To The Senate On The Restrictions On The Use Of Cash Bill

I outline my submission made to the Senate Inquiry, which is open until next Friday 15th November 2019. https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/CurrencyCashBill2019 Here is the full text of my submission. Currency (Restrictions on the Use of Cash) Bill 2019 I have carefully reviewed the latest iteration of this legislation and am gratified that the Senate has chosen to … Read moreWhat I Said To The Senate On The Restrictions On The Use Of Cash Bill

The Roller Coaster Ride Continues – The Property Imperative Weekly 09 Nov 2019

The latest edition of our weekly finance and property news digest with a distinctively Australian flavour. Contents: 00:24 Introduction 1:23 US China Trade Talks 3:04 US Markets 6:15 China 7:50 Australian Section 7:55 RBA on Monetary Policy 10:50 Household Confidence 11:10 Lending 11:40 REA 14:50 High Rise Construction 15:30 Property Market 16:20 Auctions 16:50 Bank … Read moreThe Roller Coaster Ride Continues – The Property Imperative Weekly 09 Nov 2019