Global equities rebounded strongly last week, reflecting ongoing hopes of a US interest rate cut and signs that US trade tensions with Mexico at least would soon be resolved. And sure enough, Trump suspended planned tariffs on Mexico overnight following an apparent agreement to tackle illegal immigration. Sadly, the situation... Show More
Weekly comment Global trade tensions continued to dominate market sentiment over the past week, with bond yields and equities prices dropping further. Oil prices also fell while currencies remained steady and gold benefited from a flight to safety. Iron-ore also continued to impress, despite the trade wars. The focus of market attention... Show More
Following on from yesterday’s collection on the key takeaway to emerge from last week’s Jackson Hole symposium, Livewire has asked our contributors how this affects the investment strategy around their respective asset classes. They make the case that yields are likely to stay low; the RBA is on hold for... Show More
Currency wars, increased market uncertainty and pending foreign election outcomes may see an adoption of more unconventional economic monetary policy in Australia. We believe investors need to take a conservative approach to portfolio construction, with a greater spread of assets and heightened awareness of risk in the bond market. Show More
Interest rates are at a record low and although the markets had factored in a 68% chance of a rate cut, they didn’t take it well; the ASX 200 fell 50 points from its high on the day of the announcement. That’s a very short-term reaction, but an interesting one.... Show More
A few years ago, thieves broke into the home of Jeff Gundlach, the mercurial founder and CEO of the US fund manager, DoubleLine Capital. The thieves stole millions of dollars' worth of abstract art. They also took two worthless abstract paintings signed by an amateur artist named Helen Fuchs, Gundlach's... Show More
In a recent interview with ABC TV, Vimal Gor, Head of Income and Fixed Interest at BT Investment Management, said that it’s finally Australia’s turn to be hit with deflation.“It’s quite clear that the deflationary impulse that’s been flooding the world since the GFC has finally hit Australian shores.” The... Show More
The first thing Philip Lowe will have to do as incoming Reserve Bank Governor is to review, and re-express, the bank’s inflation target. The target is 2-3 per cent and is about 24 years old. It was first articulated by then governor Bernie Fraser in a speech in March 1992... Show More
I have now covered more Australian budgets than I care to remember. Many budget speeches are not memorable; however, this one is different. What makes this budget different is that the Treasurer seems to understand how the economy works. A steady reduction in taxation on small and medium businesses leaves... Show More
The RBA announced at 2:30 pm today a cut in the cash rate of 25 basis point, bringing the rate down to 1.75%. Markets and the currency responded strongly; the AUD fell from 0.7706 to 0.7558 soon after the announcement, and the ASX200 jumped from 5269.4 to 5327.4 and continues... Show More