Economics

The Australian Bureau of Statistics (ABS) last week, released the monthly Consumer Price Index (CPI) figures for February. The consumer price index is a measure of inflation published by the Australian Bureau of Statistics. The monthly CPI read came in at 3.4 per cent in the 12 months to February 2024. The rate has now remained unchanged for three consecutive months. When excluding the volatile items, which included fuel, fruit and vegetables, and holiday travel, the CPI level was 3.9 per cent. This is a downward revision from the 4.1 per cent reported in January.  continue…

by Brett Craig Posted in Aura Group, Economics, Editor's Pick.

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The week of March 18, 2024 marked a significant legislative move as the U.S. House of Representatives endorsed a bill mandating the separation of TikTok from any affiliations with the Chinese government. The endorsement received substantial bipartisan support, with 90 per cent of Republicans and 75 per cent of Democrats voting in favour.  continue…

by Roger Montgomery Posted in Companies, Economics.

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The Reserve Bank of Australia (RBA) board left the cash rate on hold at 4.35 per cent last week, in line with market expectations. The decision was made off the basis that “inflation continues to moderate, but remains high.” continue…

by Brett Craig Posted in Aura Group, Economics.

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I was very lucky to attend the Harvard Business School Owner/ Presidents Management program over the three years to 2006. In my class of 100 mature–age students, around half were from the U.S., and the remainder were from several other countries. I know it is a gross generalisation, but it would be fair to say the U.S. students excelled at any “marketing” related case studies but noticeably under-performed in any case studies related to “accounting”.  continue…

by David Buckland Posted in Economics, Foreign Currency.

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The latest e-commerce report from Australia Post simultaneously reinforces what we know about the ineffectiveness of monetary policy and recent Commonwealth Bank household spending insights reports. 

The headline data from Australia Post reveals Australians reduced their online spending by 1.2 per cent in calendar year 2023, compared to the year before, to $63.6 billion.  continue…

by Roger Montgomery Posted in Economics.

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In this week’s video insight, I discuss the Reserve Bank of Australia’s (RBA) recent decision to maintain current interest rate levels and anticipate the upcoming announcement from the U.S. Federal Reserve (Fed), where no changes are expected. Instead, the focus shifts onto potential indicators regarding future rate cuts. With recent market shifts and economic data influencing expectations, I delve into the broader implications for investors, highlighting the importance of maintaining a long-term perspective amidst short-term economic and financial fluctuations. 
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by Roger Montgomery Posted in Economics, Video Insights.

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Retail stocks were on the nose for some time amid fears of recession, the impact of rising interest rates, the cost-of-living crisis and inflation’s impact on the cost of doing business. 

The recent HY24 reporting season, however, revealed much of the fear was misplaced. Aggregate revenue growth tended to beat estimates despite moderating slightly. Meanwhile, even though earnings before interest, tax, depreciation and amortization (EBITDA) margins compressed as the cost of doing business grew, this was somewhat offset by gross profit growth. Companies were able to pass on higher prices and more, and in the face of those price increases, consumers were surprisingly resilient.  continue…

by Roger Montgomery Posted in Companies, Economics.

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New spending figures published by the Association of Superannuation Fund of Australia (ASFA) define what it means to be comfortable in retirement. And while their numbers are well above the current age pension payments, I am not sure even those elevated numbers realistically measure up to what many, if not most, people would describe as comfortable.  continue…

by Roger Montgomery Posted in Economics, Editor's Pick.

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According to CoreLogic, the median dwelling price for Australia is $760,000; the median dwelling price in the eight capital cities (6 States and 2 Territories) is $836,000, ranging from Sydney ($1.122 million) to Darwin ($522,000), whilst the median dwelling price for Australia’s regional towns is $605,000.  continue…

by David Buckland Posted in Economics, Global markets, Property.

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In this week’s video insight, I discuss how Treasurer Jim Chalmers highlights that Australian wages are growing faster than the Consumer Price Index (CPI); a claim that overlooks the CPI’s failure to account for mortgage interest payments, thus not fully capturing the cost of living. With household debt and mortgage interest on the rise, I explore the expectation of an easing in the decline of real wages relative to living costs, amidst speculation of potential interest rate reductions. continue…

by David Buckland Posted in Economics, Video Insights.

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