ABE Weekly 16/06/2021 Market Update “Today is a gift, that’s why they call it the present” Anonymous Things on the domestic front remain a little mixed. Westpac forecasts business investment to grow from 3.7% to 6.7% in 2021 and 5 to 5.9% in 2022. Offsetting that was a reduction in our forecast for consumer spending in 2021 from 5.8% to [...]
ABE Weekly 09/06/2021 Market Update “Always deliver more than expected” Larry Page, Co-Founder Google Following the release of the Governor’s statement on the June RBA Board meeting it now seems clear that the Board has no intention of extending the YCT (Yield Curve Target) bond from the April 2024 to the November 2024. Not extending YCT means [...]
ABE Weekly 31/05/2021 Market Update “I am the master of my fate: I am the captain of my soul.” Invictus, William E, Henley Conditions is Australia are largely unchanged since our last weekly however, the Australian National Accounts to be released on Wednesday this week, will provide an estimate of economic activity for the March quarter. The RBA meets [...]
ABE Weekly 26/05/2021 Market Update “What doesn’t kill you makes you stronger” Friedrich Nietzsche The Westpac Consumer Sentiment Index fell 4.8% in May. While a 4.8% fall is always going to attract attention, we should put this result in perspective. It is still the second highest print for the Index since April 2010 and does follow an 11% [...]
ABE Weekly 19/05/2021 Market Update “You must be the change you wish to see in the world” Gandhi Despite record levels of debt in Australia, the cost of servicing the debt is forecast to hold at 0.7% of GDP due to the low interest rate environment. An early use of policies to reduce debt would have been at the expense [...]
ABE Weekly 12/05/2021 Market Update “If you can’t feed a team with two pizzas, it’s too large” Jeff Bezos The RBA’s GDP growth forecast for 2021 has been lifted from 3.5% to 4.75%. That “burst” of growth is forecast to slow back to 3.5% (unchanged from February), and to 3% (unchanged) in the year to June 2023 [...]
ABE Weekly 05/05/2021 Market Update “Genius is one percent inspiration, ninety-nine percent perspiration.” Thomas Edison The RBA kept the official rate at 10bps this week following its monthly meeting. Policy changes will centre around an extension of the Yield Curve Control Policy (YCC) to target the November 2024 bonds from the April 2024 bonds; and a third QE program of $100 [...]
ABE Weekly 28/04/2021 Market Update “If you owe the bank $1m that’s your problem. If you owe the bank $100m, it’s their problem” J. Paul Getty Bond markets have been relatively stable this past week but still very much focused on economic data out of both the US and Australia. That said there will plenty of attention on what Fed Chairman Jay Powell will [...]
ABE Weekly 21/04/2021 Market Update “Folks this government isn’t too big to fail, it’s too big to succeed”. Sarah Palin With more commentary pointing to an ever-strengthening domestic economy people must be feeling a whole lot better about the future than they did this time last year. That said, there are plenty of businesses that are still struggling to [...]
ABE Weekly 14/04/2021 Market Update “Markets can remain irrational longer than you can remain solvent”. JM Keynes The above quote from John Maynard Keynes can in some way be applied to the current state of world financial markets. He was perhaps the first economist to pioneer the idea of accommodative monetary policy. Accommodative monetary policy is when central banks [...]