The Australian employment data released last week was unequivocally strong: Employment increased 50.2k (10k expected) for the biggest increase in 4 months. This is something we expected. Full time employment was very strong at 43.3k while part time was lower than expected at 6.8k. This would reflect workers on Victorian government projects being put back … Read more
On the face of it the US CPI result that showed a monthly decline (-0.1%) and the year-on-year rate falling to 3% was very good news. The market’s reaction, however, was muted by the following issues: The market was already forecasting a decline to 3.1% following a fall in the PPI in May (flows into … Read more
The Chevron Doctrine is referring to the US Supreme Court’s decision 40 years ago, giving deference to the Environmental Protection Agency’s (EPA) answer or interpretation of environmental laws. It was coined after a landmark case, Chevron USA, Inc. v. Natural Resources Defense Council, Inc. On June 28, 2024, in Loper Bright Enterprises v. Raimondo, the … Read more
World financial markets are addicted to liquidity to maintain the price level of assets. In a move reminiscent of the over-lending in the 2008 GFC asset bubble, Congress is voting on allowing lending on Second Mortgages by Federal Agencies in a move that could lead to a tsunami of liquidity. Congress recently approved a pilot … Read more
Remarkably there are still a number of market commentators and economists claiming that inflation is still declining. Those that are calling for the RBA to increase rates, however, will be disappointed.
ASX hybrid securities are financial instruments listed on the Australian Securities Exchange (ASX) that combine features of both equity and debt securities. These hybrids offer investors a blend of the characteristics of bonds and shares, providing unique benefits and risks. Understanding ASX Hybrids Hybrid securities can take various forms, including convertible bonds, preference shares, and capital notes. … Read more
The Australian Prudential Regulation Authority (APRA) is proposing several changes to strengthen bank capital requirements and liquidity standards in response to the global banking turmoil earlier in 2024. Here are the key proposed changes: Valuing liquid assets at market value APRA is proposing to require banks subject to the Minimum Liquidity Holdings (MLH) regime to … Read more
The performance of the U.S. stock market during an election year is often a subject of significant interest to investors, economists, and policymakers. Historically, the market’s behavior can be influenced by a variety of factors related to the electoral process, including uncertainty over policy directions, investor sentiment, and the potential for changes in economic policy.
Hybrid securities are a unique asset class that combines features of both debt and equity instruments. For investors looking to diversify their portfolios and potentially earn steady income, ASX hybrid securities offer an intriguing option. However, understanding how to trade them effectively is crucial for success in this market. Know what you’re investing InBefore diving … Read more
Interest Rates The rate reversal is gaining momentum with the Fed on a “slower to lower” path if going lower at all. Fed members continue to talk up their pensive stance. 2-year treasuries have rebounded the strongest, trading now at 4.68%, a rise of nearly 60pts since January lows and 5pts last week. The US … Read more