Sorry; meant Feb
Australia facing a recession in 2014? Economist says RBA needs rates cut of 1.25%!
- Thread starter Peter 14.7
- Start date
January will be last of the IP bargains is they do drop again. Pendulum will swing IMO.
Peter
ANZ rates
Does anyone know whether ANZ have made an announcement on their rates? It normally happens the second Friday of each month.
Does anyone know whether ANZ have made an announcement on their rates? It normally happens the second Friday of each month.
Meant to happen today. Maybe they'll raise rates.
reduced by .20%, just like the other major banks
Anz Predicting another 1% worth of rate cuts.
http://www.theage.com.au/business/four-more-rate-cuts-in-2013-anz-20121217-2bjfg.html
http://www.theage.com.au/business/four-more-rate-cuts-in-2013-anz-20121217-2bjfg.html
Regarding how FX effects our export income, AFAIK, Australian coal miners' largest client China, sets coal prices in Yuan, which is tied to the USD.
If AUD rises against USD, which it has, then Australia's export income decreases in AUD terms.
Trade benefits are hard to find for a country with a strong currency.
Some argue we attract foreign capital easier, which we can invest, wisely.
However, attracting foreign capital means paying interest on it. And currently we pay interest at a rate higher than GDP growth, which indicates our use of foreign capital is not savvy enough to lift GDP a lot.
If AUD rises against USD, which it has, then Australia's export income decreases in AUD terms.
Trade benefits are hard to find for a country with a strong currency.
Some argue we attract foreign capital easier, which we can invest, wisely.
However, attracting foreign capital means paying interest on it. And currently we pay interest at a rate higher than GDP growth, which indicates our use of foreign capital is not savvy enough to lift GDP a lot.
Hi Bayview
No I did not, but can you provide an overview on this, interested in what they had to say.
THanks
MTR
there is the small matter of everything you buy being cheaper. and foreign debts are deflated. improved living standards and all that. other than that, not much benefit
Hi, same old same old. I know that if I had to choose, I'd choose strength.
Anyone care to go back to the sad days of the whole planet selling AUD?
When our money is low, our morale hits the dust too, doesn't it?
I'm sure there's a happy median somewhere!
KY
Anyone care to go back to the sad days of the whole planet selling AUD?
When our money is low, our morale hits the dust too, doesn't it?
I'm sure there's a happy median somewhere!
KY
Is this the same bank whose CEO predicted the A$ would reach $1.20? Haha
Deflation will depend on whether foreign debt is in AUD or foreign currency. I understand most is in AUD.
And much foreign debt gets rolled at term, so no net deflation advantage.
Cheaper imports help move jobs offshore, so dubious gains in the long term -> a la old first world economies Europe and USA. First world un- and low-skilled workers just become welfare burden.
The segment centered on the mental health of employers, given the economic climate and difficulty making a (small) business stay afloat.
Of course; this is totally opposite to what the usual reports are about the economy we hear lately from the Gubbmint.
What the segment was saying is that there has been more businesses fold in 2012 than did in the 12 months after the GFC, and there have been more employers suicides in 2012 than any other previous year.
They interviewed a few business owners who have either gone broke or had to dramatically cut back their business and staff, and how it has affected them psychologically and emotionally on a personal level. Most employers feel a strong responsibility towards their staff and worry when they think they might have to let some go.
One guy from "Your Business Angels" - an accounting firm set up to help businesses in financial trouble etc - was relating a few anecdotes of some of his clients who had committed suicide in recent times and so on.
It was depressing, and they predict more to come. I reckon so; especially once the compulsory extra .25% employer super contribution kicks in in July.
Some here may scoff at that as no big deal, and glibly state that retailers need to adapt with the times and get internet selling etc, or too bad.
But for many it actually is a big deal, and will be the difference between someone losing their job come July.
Not sure, but I wouldnt be ruling out the AUD reaching $1.20 by this time next year.
On the basis of falling interest rates, falling commodity prices and a mining boom that's coming to an end?
Assuming the other currencies dont go south as well.
Whilst we are slowing compared to the EU we are booming.
Peter 14.7
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Typically within the industry, mining is not included within the energy sector.
But if we were speaking generally, you'd have to include it. While there are some big projects in the pipeline, they were always in the pipeline. The question is where to after and what's the new projects? Rather than seeing new projects come online I see Olympic Dam shelved, FMG selling down assets, Rio Tinto shelving Pilbara expansion.
But if we were speaking generally, you'd have to include it. While there are some big projects in the pipeline, they were always in the pipeline. The question is where to after and what's the new projects? Rather than seeing new projects come online I see Olympic Dam shelved, FMG selling down assets, Rio Tinto shelving Pilbara expansion.
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