Wayne's Feed
May 28, 2015

Australia business investment tumbles as hurdles set too high

SYDNEY, May 28 (Reuters) – Australian businesses investment
suffered the largest fall in over six years last quarter while
spending plans for the year ahead came in far below
expectations, a deeply disappointing report that sent the local
dollar reeling.

The news will be a bitter pill for the Reserve Bank of
Australia (RBA) which only just cut interest rates to a record
low of 2 percent in the hope of reviving business spending.

May 20, 2015

How to cool housing hot spots, Down-Under style

WELLINGTON/SYDNEY, May 21 (Reuters) – Australia and New
Zealand are looking outside traditional monetary policy to do
the same thing — cool red-hot housing markets in their biggest
cites without hurting borrowers, banks and their economies –
but they are following different paths.

The success, or not, of these experiments could prove
critical to the outlook for interest rates in both countries,
while offering a guide to other rich nations on how to manage
housing booms when the broader economy still needs support.

May 14, 2015

Global markets – Dollar sags after weak data, bond rout resumes

SYDNEY/TOKYO (Reuters) – The U.S. dollar huddled near three-month lows on Thursday after poor retail data proved a huge disappointment to those expecting a strong American economic rebound from a weather-weakened first quarter.

Investors reacted by pushing back the likely lift-off date for a rate hike by the Federal Reserve, giving gold a steer to five-week highs above $1,218 an ounce.

May 14, 2015

Dollar defensive after soft data, bond rout resumes

SYDNEY (Reuters) – The U.S. dollar huddled near three-month lows on Thursday after poor retail data proved a huge disappointment to those expecting a strong economic rebound from a weather-weakened first quarter.

Investors reacted by pushing back the likely lift-off date for a rate hike by the Federal Reserve, giving gold a steer to five-week highs above $1,218 an ounce XAU=.

May 11, 2015

Australia to better deficit targets in ‘boring’ budget

SYDNEY (Reuters) – Australia’s government budget deficit will undershoot market forecasts and keep improving over time, Treasurer Joe Hockey said – just hours before delivering his annual policy package.

Speaking to the media, Hockey said the market was forecasting a shortfall of around A$40-A$41 billion but the actual deficit would “beat that”.

May 6, 2015

Rises in yields, commodities hint at global reflation

SYDNEY/LONDON, May 6 (Reuters) – A rapid revival of
commodity prices and a sudden sell-off in top-rated,
low-yielding bonds have signalled the passing of this year’s
global deflation scare, forcing a rethink of both the consumer
price outlook and investments worldwide.

The epicentre of the rapid slide in bond prices has been the
euro zone, where yields on 10-year German paper
have more than quadrupled to 0.595 percent in just five days,
erasing all the price gains made this year.

May 6, 2015

Global economy – Yields, commodities whisper of reflation promise

SYDNEY (Reuters) – A sudden sell-off in safe-haven bonds, and an equally rapid revival in resource prices, could herald the end of the dog days of deflation and a return to the more reflationary world of old.

The epicentre of the dramatic slide in bond prices has been the euro zone, where yields on 10-year German paper tripled to 0.517 percent in just four sessions, erasing all the price gains made this year.

May 6, 2015

Yields, commodities whisper of reflation promise

SYDNEY (Reuters) – A sudden sell-off in safe-haven bonds, and an equally rapid revival in resource prices, could herald the end of the dog days of deflation and a return to the more reflationary world of old.

The epicenter of the dramatic slide in bond prices has been the euro zone, where yields on 10-year German paper tripled to 0.517 percent in just four sessions, erasing all the price gains made this year.

May 6, 2015

Australians still shopping, but need to spend more

SYDNEY, May 6 (Reuters) – Australian retail sales grew for
the tenth straight month in March while demand for household
goods lifted spending for the first quarter as a whole, though
the gains fell short of what optimists had hoped for.

The Reserve Bank of Australia (RBA) cited the need to
support consumer demand as one reason it cut interest rates to
an all-time low of 2.0 percent on Tuesday.

May 6, 2015

Slump in bonds spooks stock markets, commodities surge

SYDNEY (Reuters) – Asian stocks stumbled on Wednesday in sympathy with weak U.S. and European markets as equities investors were spooked by a vicious selloff in sovereign bonds globally.

The sudden spike in bond yields is being mirrored by an equally rapid rally in resources to suggest investors are becoming less concerned about the danger of deflation.