JavaScript disabled. Please enable JavaScript to use My News, My Clippings, My Comments and user settings.

If you have trouble accessing our login form below, you can go to our login page.

If you have trouble accessing our login form below, you can go to our login page.

Business

Live

This page updates automatically

Markets Live: Gains reined in

Date

The Australian share market ends higher, but off the day's peak, on the back of Wall Street pushing to more record levels.

Sort posts by:

The Australian dollar's bearish patch is not expected to be sustained, says Deutsche Bank currency strategist John Horner. While expectations are rising of a near-term wind-back of bond purchases by the Fed, Horner says tapering is still forecast to be some months away.

"We don't expect that the negative impact it's been having on the Aussie to be sustained," Horner says.

"We think the RBA has completed its rate cut cycle. We ... think the taper might not happen for some months yet, and we think China will surprise expectations on the high side.

"So we continue to think this bout in Aussie weakness will be unwound over the coming weeks into year end."

And here are the best and worst performers from the ASX200 today:

<p></p>

The Thanksgiving holiday in the US (falls on November 28) means less liquidity in the markets this week, says FXCM market analyst David de Ferranti, and that could lead to some relief for the Australian dollar, which has continued its recent downward slide today. 

The dollar was buying 91.58 US cents.

At the same time, US economic releases on durable goods orders and consumer confidence this week - if they come in with healthy figures - could strengthen expectations of a near-term Fed taper and lift the greenback.

Meanwhile, RBA deputy governor Phil Lowe is set to speak in Sydney on productivity and infrastructure. Reserve Bank officials have used their recent speeches to talk down the local currency, although analysts said they did not expect Lowe to go any further that governor Stevens, who ramped up the jawboning by raising the prospect of FX intervention.

Next week will also see the Reserve Bank's board meet for the final time this year, with the statement possibly containing more negative sentiment about the recent strength of the local dollar.

Here's how the sectors performed:

  • Consumer discretionary: +0.4%
  • Financials: +0.3%
  • Industrials: +0.7%
  • Materials: +0.3%
  • Property trusts: +0.5%
  • Gold miners: -3.2%

The market has closed higher, but off the day's peak. The benchmark S&P/ASX200 added 16.9 points, or 0.3 per cent, to 5352.8. The broader All Ords gained 15.8 points, or 0.3 per cent, to 5346.1.

As of today, bank customers will no longer have to wait until the next business day for funds deposited from a different lender to be available to them.

The Reserve Bank said today that electronic money transfers - such as the payments of salaries, government benefit, and dividends - would now clear on the same day.

Previously, these types of payments "cleared" at 9am on the next business day.

Governor Glenn Stevens has previously said this aspect of the financial system looked "a bit dated", and many consumers expected transfers to occur more quickly.

The changes will affect money transfers worth some $53 billion every business day.

Direct debt payments of bills, alongside "pay anyone" bank transfers, will also be affected by the change.

Foxtel boss Richard Freudenstein has called on the federal government to allow it to compete for the rights to more major sporting events, saying current rules give an unfair advantage to free to air networks.

Mr Freudenstein said current anti-siphoning regulations, which ensure major sporting events are broadcast on free to air television, had hurt competition in the TV industry.

Events currently included on the anti-siphoning list include the Olympics, the Australian Open tennis, NRL and AFL games and cricket test matches played in Australia.

He said allowing Foxtel to compete for the rights to major sporting events would ensure more money for sporting codes.

‘‘If there was a simpler, fairer anti-siphoning system there would be more money available for sport and that would find its way to encouraging the next generation of players,’’ he said.

The Australian dollar is on track to record its biggest monthly loss against the US dollar since June, amid Reserve Bank jawboning, rising Chinese interest rates and heightened expectations of near-term Federal Reserve stimulus reductions.

The local dollar is trading near three-month lows against the US dollar and euro, and it’s the second-biggest loser against the two currencies this month.

It has shed 2.79 per cent against the US dollar and 2.54 per cent against the euro in November, and is only 3.09 per cent higher than its year’s low, just under 89 US cents in late August.

‘‘The Australian dollar is more clearly in a bear market,’’ RBS senior currency strategist Greg Gibbs said in a note today.

‘‘[It’s] reflecting the evidence that Australia’s resources investment cycle is in decline, a sense that the restructuring [and] reform process in China is likely to see a steady decline in its growth over the medium-term and its reforms increase risk of a significant disruption to growth.’’

Read more

BHP Billiton is a step closer to its long term goal in the Pilbara, after announcing $US301 million worth of new spending today.

The global miner will spend the money on two new ship-loaders at Port Hedland, which will help increase the export capacity of its iron ore division.

Ship-loaders are effectively large spouts that pour iron ore directly into the hull of giant ships, and the two new ones will replace a couple of 40 year old ship-loaders.

The new models can each move an extra 2,500 tonnes of ore per hour.

BHP shares are up 0.1 per cent at $37.94.

Read more

Downgrades by Macquarie and CIMB following food processor Goodman Fielder flagging a difficult outlook pushed the shares to their lowest level since January.

In afternoon trading, the shares were down 7.8 per cent at 65 cents, near the day’s low of 63 cents, the lowest since January.

On Friday, the company warned that earnings would be weighted ‘‘significantly’’ to the second half of fiscal 2014, following a squeeze on margins in the New Zealand dairy business, which it is unlikely to recover.

This follows problems with its Fijian poultry business which emerged late in the 2013 financial year.

Rail operator Aurizon has scaled back a proposed $6 billion rail development in Queensland’s Galilee basin with India’s GVK Hancock, now planning to build only 300 kilometres of new track instead of the 500 kilometres initially proposed to cut costs.

Aurizon said on Monday it had “made progress” on its proposal, announced in March, for the joint development of a rail line and new coal terminal at Abbot Point with GVK, and had agreed the commercial terms for a transaction, including equity and debt funding.

But it said only 300 kilometres of the proposed rail corridor from the Galilee basin to Abbot Point would be built before connecting into existing Aurizon rail infrastructure.

Aurizon said this would allow for “a phased development” at the Abbot Point T3 terminal, reducing the initial cost of infrastructure.

Read the full story at AFR.com

Global miner BHP Billiton has cancelled the opening of its Jimblebar iron ore mine due to the closure of Newman airport in the north of Western Australia.

BHP chief executive Andrew MacKenzie, WA Premier Colin Barnett, dignitaries and media were scheduled to travel to the Pilbara mine opening on Monday.

But six Newman-bound Qantas and Virgin Australia flights were cancelled after an emulsion treatment applied to the tarmac failed to dry and became sticky in the heat.

A Newman Airport spokesman said the curing process had not occurred as quickly as planned and flights were cancelled to prevent a build-up of emulsion on plane tyres and fuselages.

‘‘It’s got no effect on the friction - the aircraft can brake, but it’s just a messy business,’’ the spokesman said.

A BHP spokeswoman said the company had not decided if it would reschedule an official opening event.

‘‘Though regrettable, the cancellation does not detract from the significant achievement of the opening of our newest mine, particularly the delivery of first ore six months ahead of the original schedule,’’ the spokeswoman said.

She said BHP Billiton was using charter services and landing aircraft at alternative locations to accommodate mine workers who were due to travel to site.

The federal opposition has signalled it won’t back proposed changes to the GST.

Shadow minister Anthony Albanese has avoided directly responding to questions about lowering the $1,000 threshold on imports, but says Labor won’t back an ‘‘extension’’ of the tax.

The states and territories are due to argue the case for a lower GST threshold on foreign imports in Canberra on Wednesday, at the first meeting of the Standing Council on Federal Financial Relations since the change of government.

Mr Albanese instead took aim at the government’s attempt to repeal the mining tax introduced under Labor prime ministers Kevin Rudd and Julia Gillard.

‘‘The only thing they introduced (to parliament) was something to give the big miners a tax break which they don’t need,’’ Mr Albanese told reporters near Hobart.

Struggling states like Tasmania were in danger of missing out on GST revenue if the government reformed the tax, he said.

Proxy adviser ISS is backing the removal of Billabong chairman Ian Pollard and two non-executive directors from the surf and skate wear retailer’s board, setting the stage for a shareholder showdown at next month’s annual meeting

In a report released today, ISS said the three independent directors – Dr Pollard, Sally Pitkin and Howard Mowlem – had presided over a period of “unabated shareholder value destruction”, missed strategic opportunities and approved a “coercive” financing deal that was ultimately derailed.

The removal of the three incumbent directors has been proposed by dissident shareholder Coastal Capital, which emerged with a 5 per cent stake in May.

ISS is backing the appointment of two dissident shareholders – Coastal Capital’s Todd Plutsky and Vlad Artamonov – saying they are qualified candidates who are likely to ring a fresh perspective and financial oversight to the board.

ISS was scathing of the performance of Billabong under the current board, saying Dr Pitkin’s tenure had coincided with a 79 per cent decline in the company’s market capitalisation and Dr Pollard and Mr Mowlem had presided over a 60 per cent drop in market value.

Read the full story at AFR.com

Turmoil: Billabong.

Turmoil: Billabong. Photo: Glen Hunt

Here's a quick glance across the region:

  • Nikkei: +1.3%
  • Hang Seng: +0.2%
  • Shanghai: flat
  • Taiwan: +1%
  • South Korea: +0.8%
  • Singapore: +0.2%
  • New Zealand: +0.2%

So why has the Australian dollar been weakening this month?

There's a range of factors apart from the RBA's jawboning, says RBS senior currency strategist Greg Gibbs.

Catalysts for the recent slide includes:

  • Bernanke's speech on longer US interest rates for longer, and the FOMC minutes. Read by Asian markets as a sign that tapering could happen in coming months
  • Steady and relatively rapid rise in Chinese interest rates across the curve from mid-October.
  • Weaker-than-expected HSBC China flash PMI for November.

 

"The Australian dollar is more clearly in a bear market, reflecting the evidence that Australian's resources investment cycle is in decline, a sense that the restructuring/reform process in China is likely to see a steady decline in its growth over the medium term and its reforms increase risk of a significant disruption to growth," Gibbs says in a note.

But he says it is possible the dollar could strengthen slightly this week given that it has experienced significant under-performance on medium-term concerns and through RBA jawboning.

The Commonwealth Bank has retained its spot as the big bank with the highest customer satisfaction ratings in the country, Roy Morgan said today.

Of CBA's customers, 81.3 per cent were satisfied with their bank, compared with 79.4 per cent at Westpac, 78.2 per cent and NAB and 77.5 per cent at ANZ.

The report points out how much things have changed for NAB - which a year ago was on top of the table with a rating of 80.4 per cent

The main reason for this appears to be a sharp increase in satisfaction ratings among the mortgage customers of Westpac, ANZ and CBA.

NAB mortgage customers have not been as positive towards their bank. This may because NAB this year ended its pledge to offer the lowest standard variable mortgage of the big four.

Concerns about the near term earnings outlook saw shares in one-time market darling ALS marked down due to its lack of guidance for earnings into the New Year.

Late this morning, ALS released September half earnings of $97 million, which was down 47 per cent but in line with its earlier guidance of $90-110 million for the half.

The net profit for the December quarter is expected at $47 million, broadly in line with the quarterly profit in the June and September quarters, but the company would not give any further guidance into the New Year.

As a result, in afternoon trading, the shares were off 33 cents at $8.79.

Here's some stats on how the Australian dollar has fared against the US dollar and the euro over the past month and for this year.

  • The Australian dollar is the second-biggest loser against the US dollar and the euro, after the Japanese yen, this month. It's shed 2.79 per cent against the US dollar and 2.54 per cent against the euro
  • The local currency is the third-biggest loser against the US dollar and the euro in the year-to-date. It's lost 9.41 per cent against the US dollar, behind the South African rand and Japanese yen, and slipped 11.80 per cent against the euro.
  • The Reserve Bank's trade-weighted index - which measures the dollar against a broad basket of currencies - is at 70.5.
  • The Australian dollar is only 3.09 per cent higher than the year's low of just under 89 US cents in late August
  • The local dollar fell nearly 2 per cent last week, its biggest weekly decline last week since early August (-3.82 per cent)
  • The local currency is on track to record its biggest monthly decline since June, when it lost 4.52 per cent of its value

Oil and gas player AWE Limited has sold a 50 per cent stake in the Northwest Natuna PSC joint venture in Indonesia to operator Santos for about $205.50 million.

The Indonesian Ministry of Energy and Mineral Resources and the regulator, SKK Migas, have approved the sale. AWE acquired 100 per cent of the Northwest Natuna PSC in February 2012 for $42.63 million plus $109.31 million in debt.

‘‘The subsequent sale of a 50 per cent interest is expected to generate an estimated unaudited after tax profit of approximately $60 million,’’ AWE said in a statement.

It’s shares are up one cent to $1.20.

A majority of Australians want the federal government to block an American food giant from buying GrainCorp, according to a poll.

Some 51.2 per cent of respondents to a GPS-Melbourne Institute poll say Treasurer Joe Hockey should stop Archer Daniels Midland’s (ADM) from acquiring all of Australia’s biggest grains handler.

Just 18.9 per cent of those surveyed were in favour of allowing the takeover, with 30 per cent undecided.

The poll of 1,000 people comes as the Nationals in the coalition government urge Mr Hockey to oppose the ADM takeover when he makes a decision, due on December 17.

Brent crude oil has taken a hit today after the breakthrough nuclear deal between Iran and the West.

Tough sanctions against Iran in the past two years have slashed exports from the OPEC member by more than half and cost Tehran billions of dollars in revenue losses a month, keeping Brent above $US100 a barrel despite weak global demand.

Brent crude is down 2.3 per cent to $US108.49 per barrel.

But further declines in oil prices are unlikely until more details emerge on the agreement, with major factors influencing demand such as worries over when the United States will curb its monetary stimulus overshadowing the deal.

"Prices are reacting to the historic deal because it takes some of the risk premium out," said Ben le Brun, a market analyst at OptionsXpress.

"But this news is hot off the press, and so there is some knee-jerk reaction. Oil may not fall much from here and we may see some paring back of losses."

Local oil players don't seem to be taking much note of the deal:

Woodside: +1 per cent
Santos: -0.4%
Oil Search: +1%
Aurora Oil and Gas: -0.2%

So when could the RBA intervene in the FX markets? When it's sure that it'll be successful, says Westpac senior currency strategist Sean Callow.

The RBNZ has a very specific checklist of boxes that need to be ticked in order for them to intervene. And one of them is the prospect of success.

"So central banks are very loathe to embarrass themselves by getting into the market ... and then they are embarrassed [if they don't succeed].

"Global markets are so heavily traded. The bulk of it is offshore and it's really difficult for any one entity, even one as powerful as the RBA, to influence the Aussie's value on a substantial basis."

Callow says the prospects of failure - especially for a central bank like the RBA that is highly regarded around the world for its management - is an argument for caution.

"The [Bank of Japan's] experience is not one that the rest of the world envies, where they intervened many times and frequently, it was just embarrassing what happened.

"They were just a blip on a chart when you look at them."

We've explored the RBA's recent intervention in currency markets. But how effective have the interventions been?

Barclays chief economist Kieran Davies says most research on this topic suggests that intervention "has at best a very short-term effect on the exchange rate".

The RBA itself has analysed this issue and said that any impact was very hard to pin down and that it could be short-lived and sometimes counter-intuitive, Davies notes:

  • For example, the RBA found that selling $1 billion was actually associated with a 0.7 per cent appreciation of the exchange rate the next day.
  • However, intervening over more than one day had the desired effect, with a $1 billion sale lowering the exchange rate by 0.5 per cent.

Given the size of FX markets nowadays, analysts say any intervention could be too small to effect any meaningful change.

In February, New Zealand's Finance Minister Bill English said he would not risk using the country's limited funds to intervene to lower the strong dollar.

''We just don't want to take that kind of risks. We are a small country,'' English added. ''We'll be out in the war zone with a peashooter.''

Some more on Saputo's latest sweetener in the WCB takeover battle. RBS Morgans analyst Belinda Moore describes the amended offer has a ‘‘nice Christmas windfall’’ designed to secure a majority stake:

  • It’s a nice simple deal now. There is no messiness around if you’ll get a dividend or franking credits and what that will mean.
  • Effectively, if they accept today they’ll get $9 and the minute Saputo gets over 50 per cent, within five days they get paid an extra 20 cents a share in the post.

The stream of new listings is continuing with data analytics business Veda due to debut on the ASX on December 5.

With an offer price of $1.25 per share, Morningstar recommends subscribing to the share offer, placing fair value at $1.70 per share.

“Veda has a near monopoly in the consumer risk and identity segment and holds a majority market share of the commercial segment,” says a Morningstar report.

An entry of a new competitor in consumer credit reporting is unlikely to have a large impact on earnings, says Morningstar, which expects revenue growth at an average of 9 per cent over the next three years.

Competition, changes in regulation, soft economic conditions and reputational damage remain the key risks, according to Morningstar.

Challenging markets have pushed the earnings of laboratory analysis group ALS down sharply, with the prospect of flat earnings through the balance of the financial year.

In the September half, the net profit fell to $97.7 million, down 28 per cent, but within the guidance of a net profit of between $90-110 million for the half. Revenue fell 8.5 per cent to $745 million, and the interim dividend was cut 2 cents to 19 cents a share.

Markets for geochemical and coal services were ‘‘challenging’’ the company said, against the backdrop of weak commodity prices and cost cutting by clients.

In the December quarter, the net profit is expected to be flat at $47 million, but with the fourth quarter ‘‘difficult to forecast’’.

Shares are down 1.2 per cent.

Real estate trust Commonwealth Property Office Fund (CPA) has terminated a deal with Dexus Property Group and a Canadian pension fund, after receiving a higher takeover offer from property investor The GPT Group.

The $2.99 billion takeover bid from GPT, whose biggest shareholder is Singaporean sovereign wealth fund GIC Private Limited, has gate-crashed the deal with Dexus and Canada Pension Plan Investment, as foreign investors bet on the upward trend in Australia's office property sector.

Commonwealth Managed Investments Limited (CMIL), a wholly owned subsidiary of Commonwealth Bank that manages CPA on behalf of unit holders, said it had scrapped the $2.8 billion deal after considering the GPA offer.

CMIL said Dexus and the Canadian fund could undertake further due diligence on a non-exclusive basis until December 9, and added that it would consider "any proposal that maximises unitholder value".

Shares in GPT are up 2.9 per cent, Dexus has added 1.2 per cent to $1.057 while CPA has shed 0.2 per cent to $1.262.

Canadian dairy dynamo Saputo has thrown Warrnambool Cheese and Butter shareholders another $10 million in its bid to control the company.

Saputo this morning increased its offer for Australia’s oldest-listed dairy processor to $9.20, or about $515 million. But the extra cash will only be paid if the company gains more than 50 per cent of WCB shares.

Saputo, which has maintained an unconditional offer of $9, is facing a tough task to secure a majority stake in WCB, with rival bidders Bega and Murray Goulbourn owning about 35 per cent WCB and Japanese food conglomerate Kirin another 10 per cent.

The 20-cent sweetener has replaced a 46-cent dividend that WCB was going to pay shareholders if Saputo gained 50.1 per cent of the company.

WCB's board is recommending the "improved and simplified" offer.

The global deal to lift sanctions against Iran could unleash a flood of oil onto world markets by next year just as crude output picks up in Libya, Iraq, and North America, triggering a slide in prices and a major shake-up of the energy landscape.

The accord should unlock 800,000 barrels a day (b/d) of global supply by next year in a market of 89 million, rising over time as foreign firms return and the country’s ruined oil industry comes back to life. Export curbs will stay in place for another six months but a planned escalation of curbs will not occur.

Citigroup said the Geneva deal should cut global oil prices by $US13 over time, enough to depress Brent crude below $US100 and US crude below $US85.

The bank said falling energy prices could mark the death of the commodity supercycle, already struggling as China shifts to a new phase of “smart urbanisation”.

Alastair Newton from Nomura said the “geopolitical risk” premium in the oil price should fall but there will be no immediate softening of the oil embargo, adding that talks could still break down over Iran’s heavy water reactor at Arak.

Read more

As mentioned earlier (10.23am), oil prices have already reacted, with Brent down 2 per cent and US crude losing 0.7 per cent.

RBA governor Glenn Stevens has raised the prospects of intervening in foreign exchange markets to bring down the Australian dollar.

So how many times has the RBA intervened in recent years? The most recent intervention, at least one that the RBA has officially acknowledged, was in 2008 during the financial crisis, says Barclays chief economist Kieran Davies.

In 2008, the central bank bought $3.7 billion during the global financial crisis. In 2007, it also bought $300 million.

"This intervention was an attempt to calm disorderly markets, where the bank was trying to ensure the depreciation of the exchange rate at the time was orderly, without "excessive price gapping'," Davies says.

Unofficially, the RBA is also believed to have intervened in FX markets in 2012, when it accepted an estimated $1 billion deposit from another central bank.

Davies adds that as Stevens has been at pains to stress the Reserve Bank has not undertaken large-scale intervention, the central bank may have made small-scale ones.

"In this respect, the RBA's monthly data on its FX transactions suggest the bank could have intervened by selling $300 million in October. ... The RBA has said that reserve rebuilding transactions are 'designed' to avoid influencing the market, but presumably in current circumstances the bank would be pleased if such transactions helped push the exchange rate lower and gave the market the impression it was intervening."

<p></p>

Bitcoin: a viable currency or just a fad? Jeff Sommer from The New York Times takes a look.

It doesn't fit into a neat product category. Often called a virtual currency, it's not legal tender anywhere on the planet. It's not an income-generating asset class suitable for most investors. Its value fluctuates wildly, from one minute to the next. And while it can be a cheap way of transferring money, there are too many glitches in its emerging network for bitcoin to be reliable.

Read more

Bitcoin: The future of currency?

Bitcoin: The future of currency? Photo: Reuters

Here's how the sectors have opened:

  • Consumer staples: +1%
  • Consumer discretionary: +0.9%
  • Energy: +0.6%
  • Financials: +0.7%
  • Health: +1%
  • Materials: +0.4%

It's the last week of the annual meeting season and it's going to be a busy one. The Australian Shareholders' Association (ASA) has compiled a complete list of AGMs and there's 600 this week, more than 100 on Tuesday, Wednesday and Thursday - and 200 on Friday, with most of them held in Perth.

"It is ridiculous that more than 200 ASX listed companies hold their AGMs on the last day of the season," said the ASA's Stephen Mayne.

"ASA will be directly contacting these last day laggards in 2014 and specifically requesting that they be better organised next year and get themselves out of the last day club."

Mr Mayne dubbed the companies as being part of the "last day laggards club".

"If you've got something to hide, having an AGM on Friday afternoon in Perth on the last day of the season is the best way to avoid attention."

Here's the ASA's list of AGMs

Oil prices have tumbled on the back of the Iran nuclear deal struck overnight.

Brent Crude is trading down 1.9 per cent at $US108.92 a barrel, while WTI crude is 1.1 per cent lower at $US93.74.

Under the six-month long interim deal, Iran has agreed to stop building nuclear facilities and refining uranium to weapons-grade level, and to dilute the stockpile it has already built up. It will also allow international inspections of its nuclear facilities, but it will keep most of its infrastructure in place.

Read more

The benchmark S&P/ASX200 index has opened up 32.9 points, or 0.62 per cent, at 5,368.8, while the broader All Ordinaries index is up 32.9 points, or also 0.62 per cent, at 5,363.2.

Tim Radford from Rivkin says the 'B'-word will be on the minds of investors this week.

The real question on the minds of investors is how much higher can stocks go? The word ‘bubble’ continues to be thrown around, leading to investors avoiding buying at current levels due to fear of buying at the top. Yes, in the short-term US stocks are nearing highly overbought levels and we should expect a pullback. But guessing when this pullback will occur is very difficult given how strong upside momentum is. On this basis, it’s quiet pointless trying to pick the top and wait for a pullback to re-enter this market. All that really matters is that the trend remains up and buying momentum is strong, leaving plenty of good individual stock picking opportunities available for investors.

Moves to slap GST on overseas online shopping purchases worth less than $1000 will be on the agenda when Federal Treasurer Joe Hockey meets his state and territory counterparts this week.

The treasurers will meet in Canberra on Wednesday from 8.30am for the Standing Council on Federal Financial Relations, the first since the change of government.

A spokeswoman for Mr Hockey said the meeting will focus on economic growth and ways to increase productivity.

The $1000 threshold at which the GST is collected on goods and services purchased from abroad will be on the agenda.

The use of jawboning by central banks has come into focus after a month of intense efforts by the Reserve Bank to talk down the dollar culminated in governor Glenn Stevens last week flagging a possible intervention in foreign exchange markets.

The currency continued its slide last week, closing at US91.83 cents compared with its October high of US97.08 cents.

The fall made the dollar the second-biggest loser, after the yen, against its US counterpart this month. The currency had been gaining after sinking to a year's low of just under US90¢ in late August.

Strategists said while the Reserve Bank's jawboning was not the only factor contributing to the dollar's selloff, it played an important role in its decline.

''Linking to the outlook for mining investment has been important,'' said RBS senior currency strategist Greg Gibbs.

This morning, the dollar is trading at 91.68 cents.

Read more

Local shares are expected to open higher, extending Friday's rally after both the Dow industrials and the S&P 500 reached fresh record highs ahead of the weekend.

  • SPI futures up 23 points.
  • AUD at 91.78 US cents; it was also at 92.96 yen, 67.74 euro cents and 56.54 British pence.
  • On Wall Street, the Dow gained 0.3%, the S&P was up 0.5% to a new record close and the Nasdaq rose 0.6%.
  • In Europe, London’s FTSE lost 0.1%, Frankfurt’s DAX gained 0.3%, while EuroStoxx rose 0.4% and the CAC in Paris jumped 0.6%.
  • Brent oil rose 0.9% to $USUS111.05.
  • Spot gold flat at $USUS1243.40 an ounce.
  • Iron ore up 0.1% to $US136.50 per tonne.

Good morning. Welcome to the Markets Live blog for Monday.

Contributors: Jens Meyer, Max Mason, Luke Higgs

This blog is not intended as investment advice

BusinessDay with agencies

 

Quotes Search

Sort comments by:
  • Apologies to all here. I bought WBC this afternoon at 3:00 pm have a look at the one day chart !!

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 25, 2013, 3:48PM
    • sold my WBC a few weeks back. has been diving ever since. WBC a good short at present. ...nothing more

      Commenter
      no banks .. no party!
      Location
      Date and time
      November 25, 2013, 4:15PM
  • When you prepare for a cyclone you don't need the date the cyclone will hit. Some people also have comical ideas about how markets work. Don't be one of them.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 3:39PM
    • Ok, so I will carp on for 5 years about a dip.... then it will happen & Im a genius

      Commenter
      in awe of your wisdom
      Location
      Date and time
      November 25, 2013, 3:41PM
    • Big difference between preparing for the cyclone and betting on the cyclone. Why do you continue to embarass yourself on here daily?

      Commenter
      Contrarian
      Location
      Date and time
      November 25, 2013, 3:47PM
    • http://www.theage.com.au/business/markets-live/markets-live-best-day-in-three-months-20131011-2vc5g.html

      Commenter
      BOQMAN
      Location
      al_fos
      Date and time
      November 25, 2013, 3:57PM
    • What if you live in Tasmania ?

      Commenter
      Oracle
      Location
      2233
      Date and time
      November 25, 2013, 4:03PM
    • LOL we're still in the GFC and we've 3 corrections since, the last one 6 months ago and the economy has deteriorated since then. LOL embarrassed, you should be.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      November 25, 2013, 4:03PM
    • good point, and still can't get it right.

      Commenter
      no banks .. no party!
      Location
      fries?
      Date and time
      November 25, 2013, 4:03PM
    • Oh and why do you keep changing screen name?

      Commenter
      Allan
      Location
      Prahran
      Date and time
      November 25, 2013, 4:04PM
  • The hapless CEO of Goodman Fielder is closing to announcing another profit warning. Chris Delaney must be an expert on this now.

    Commenter
    Viking
    Location
    Sydney
    Date and time
    November 25, 2013, 3:26PM
  • The clueless Board of Australia Post pays their CEO Ahmed Fahour $4.8m, whilst the CEO of US Post is paid $400k. Any clue who is overpaid?

    Commenter
    Viking
    Location
    Sydney
    Date and time
    November 25, 2013, 3:24PM
  • Interesting that the market has'nt taken notice of the sharp fall in USD/AUD spot price when pricing miners.Their commodity price on those unhedged have immediately seen their revenue rise nearly 10% eg NCM.

    By the way $365m daily shorts traded on NCM. Very high risk short at these levels.

    Commenter
    Harry Rogers
    Location
    Date and time
    November 25, 2013, 2:50PM
    • Same for QBE. Markets sense it is a short term drop.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      November 25, 2013, 3:23PM
    • Yes also are now operating at net margin of 23% on current gold price

      Commenter
      Harry Rogers
      Location
      Date and time
      November 25, 2013, 3:52PM
  • Elders ceo Malcolm Jackman is pleading with the government to resolve the spying scandal.

    After a catastrophic 99.6% drop in Elders share price he should be falling on his sword.

    Let's hope the live cattle trade goes belly up. The resulting abuse of animals is intolerable.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 2:32PM
  • Some days ago, someone on here said NCM heading below $8, in my mind i scoffed. Well i have finally had it and sold the lot, at a pretty big loss. 3 times i have owned NCM and twice they have continued on their downward spiral, no one to blame but myself (and very bad NCM management). Apologies to the person I mentally scoffed at. My last hope is that NCM now go out backwards, which they seem to be well on their way to doing. Hope none of my associates here get burned though.

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 25, 2013, 2:30PM
    • You're forgiven. I hope NCM doesn't now bounce (seems unlikely!). I've also had my share of losses. We learn from them. My mistakes are to often take profits too early (but I've seen them slip away many a time) and to be reluctant to jump onto a climbing trend (wait for the dip that doesn't happen - missed BOQ that way).

      Commenter
      Yin or yang
      Location
      Date and time
      November 25, 2013, 3:20PM
    • I think that the gold stocks are fluttering their way down for a while to come. I also got burnt 3 times and happy only once on gold in the last few months. A week or two ago I thought Iron ore stocks would take a break but they are still going slower but still going. If this keeps up, I will start to have doubts about myself and have to employ a breaker, sorry meant broker..

      Commenter
      GeoPerth
      Location
      Date and time
      November 25, 2013, 3:32PM
  • Clearance rates down Syd and Melb. Again.

    Golly gosh, booms are getting shorter lived by the day.

    Commenter
    Jim Jones aka St James aka Catch 22
    Location
    I was dropping hints for ages Allan, what took you so long?
    Date and time
    November 25, 2013, 2:27PM
  • Hilarious seeing the most vocal critics asking for explanations of basic trading techniques. Says it all. ROFLMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 2:06PM
    • There's so many comedians on here like:

      mitch commenting about McDonald's dividends thinking they were paid annually when they are actually quarterly dividends.

      Prince Eugene telling us how he's making a killing in positively geared gains on his negatively geared investment properties lol wtf?

      Commenter
      Kookaburra
      Location
      Markets Live
      Date and time
      November 25, 2013, 2:26PM
    • Need to get the knowledge Gordo...Tax Deductions 101 for you...

      Commenter
      Prince Eugen
      Location
      Date and time
      November 25, 2013, 3:16PM
    • Net tax deductions means you're making a loss. Littlelandlords are just mums and dads with delusions of grandeur and a large dose of ignorance of tax matters.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      November 25, 2013, 3:31PM
    • Please tell us all how you are "making a killing" claiming negative gearing tax deductions with the ATO on positively geared investment property income, Prince Eugene.

      Commenter
      Bev Bergeron
      Location
      Canberra
      Date and time
      November 25, 2013, 3:35PM
  • PRR turned a corner...
    still puzzled by 15% daily increases when theres 0 news out...20 million changing hands...ASIC!!!!!

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    November 25, 2013, 2:04PM
  • "ANZ chief Mike Smith said yesterday that the currency was likely to resume its climb above $US1.10, and one of the world's leading foreign exchange experts predicted the dollar would continue to rise and could hit $US1.30 in 2013 and $US1.70 by 2014."

    www.theaustralian.com.au/business/rampaging-dollar-could-hit-us170-as-budget-and-industries-threatened/story-e6frg8zx-1226052152303

    At $10M Mike Smith is 90% overpaid.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 1:44PM
    • What I found the most curious and laughable observation about the whole recent AUD/USD exchange rate cycle was how nearly none of the major financial services professionals in Australia advised clients to acquire USD denominated assets while the AUD was around and above parity.

      Then after the AUD fell below US$0.90 recently, Australian stocks were back around 2006 levels, and US stocks were setting new all time highs, many started advising clients that they should buy USD denominated assets to take advantage/get exposure to the significant price movements in the AUD/USD exchange rate lol

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      November 25, 2013, 2:09PM
    • If it continues its rise to $1.10 then i expect that Glen Stevens will be selling the furniture from his office, cause with his current policy their will be nothing left to throw at the market. And then like other third world countries we will be reduced to printing money to pay the bad trades.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 2:21PM
    • Nice one! Whoever (Dr Savouri) was spruiking $1.70 AUD/US by 2014 should be taken out the back & shot...

      Commenter
      Good spot
      Location
      Date and time
      November 25, 2013, 3:54PM
    • Quoting from an article that is over six months old is not exactly "yesterday" is it. Try to keep up Allan.

      Commenter
      Unusual Suspect
      Location
      Date and time
      November 25, 2013, 4:15PM
  • "Australia should not be expected to apologize for the steps we take to defend this country,” Abbott told parliament."

    No he should be apologising for breaching the UN Declaration of Human Rights Article 12:

    "No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation.

    Everyone has the right to the protection of the law against such interference or attacks."

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 1:39PM
    • Come on Al, you're having a laugh if you think the Indonesians don't spy on us.

      Commenter
      Andrew137
      Location
      Date and time
      November 25, 2013, 2:59PM
    • Short $11.20. Gift.
      Commenter
      Allan
      Location
      Prahran
      Date and time
      October 11, 2013, 11:29AM

      Commenter
      shorter stalker
      Location
      Date and time
      November 25, 2013, 4:09PM
  • With dividends @ 4% ie same as term deposit which has no risk the ASX is @ 30% overpriced.

    Economy is now slowing markedly so expect an AORD @ 3700. 200 higher than my last prediction due to currency movement.

    Enjoy!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 1:36PM
    • Wow. That's still along way from your 2500 prediction posted on Friday. You're always behind the game.

      Commenter
      Contrarian
      Location
      Date and time
      November 25, 2013, 2:08PM
    • Diddums.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      November 25, 2013, 2:18PM
    • You've been reduced to that? Lol

      Commenter
      Contrarian
      Location
      Date and time
      November 25, 2013, 2:22PM
    • When are we going down Allan ?

      Commenter
      Oracle
      Location
      2233
      Date and time
      November 25, 2013, 2:30PM
    • Not even close to negative in this bull market!

      I tip AORDs will march higher to 5550 within 6 months (April 2014) on continued low rates and steady China-growth.

      Commenter
      Goldman
      Location
      Date and time
      November 25, 2013, 3:49PM
  • Good to see BOQ behaving itself.

    Last short $12.75. Gift.

    http://www.businessday.com.au/business/markets-live/markets-live-us-bubble-worries-lurk-20131119-2xrv7.html

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 25, 2013, 1:32PM
    • explain this one?

      http://www.theage.com.au/business/markets-live/markets-live-best-day-in-three-months-20131011-2vc5g.html

      Commenter
      no banks .. no party!
      Location
      Date and time
      November 25, 2013, 1:53PM
    • Now where's that spoon...? Oh here it is...

      One is open position, one is add to position.

      DOH!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      November 25, 2013, 2:12PM
  • I can't help but think that in my household placing GST on on-line purchases under $1000 will hurt more than the carbon tax.

    I also note well that Gerry Harvey <i>et al</i> seem much more concerned with the export of retail jobs than they ever were with the export of manufacturing jobs...

    Commenter
    Oh_Mighty_Zeus
    Location
    Date and time
    November 25, 2013, 1:31PM
    • And, yes, a HTML fail for me. If I had a coding job it would be outsourced quick smart!

      Commenter
      Oh_Mighty_Zeus
      Location
      Date and time
      November 25, 2013, 2:42PM
  • what is happening with jbh

    Commenter
    rocketli
    Location
    Date and time
    November 25, 2013, 1:11PM
    • 2m optical cable:

      JBH Hi Fi: $39.95
      Ebay: $2.50 inc postage

      Save 94% online.

      No difference in performance whatsoever.

      That's what's happening to JB Hi Fi.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      November 25, 2013, 1:30PM
    • Allan thats the smartest thing you have ever said on here. But you forgot to mention that you can buy the cheaper from your lounge room, without ever having to go crowd infested sops.

      Commenter
      tim_71
      Location
      Brisbane
      Date and time
      November 25, 2013, 1:51PM
    • If the shops are still crowd-infested then bricks & mortar retail still has some attraction.
      In many cases the price difference between local retailers and buying from o/seas is so great that adding 10% for GST for goods bought o/seas will do nothing to stop the trade. What could hurt is the 2-3 week delay while goods from o/seas are assessed for GST then delivered. Who is going to pay for that bureaucratic process.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 25, 2013, 2:23PM
  • After comments from ED or others on VRL. I have held it for few years with purchase $1.82. Is now hovering just below $8. I'm no newby and normally a buy and keep type, but can't make sense of current price being value ? It just keeps rising !
    Any genuine input appreciated !

    Commenter
    Pierre
    Location
    Date and time
    November 25, 2013, 1:08PM
    • To the OP I bought 2 parcels VRL 500 shares each, years ago to get access to their annual shareholder discount cinema vouchers which they knocked on the head sometime ago. My entry price back then was over $5. Perhaps patience sometimes favours the patient as they are north of $7 now. If you have a look at their announcements there's a 25 or 50c capital return coming or being muted.

      Commenter
      MelMan
      Location
      Date and time
      November 25, 2013, 3:48PM
  • Anyone know why ILU keeps falling? and thoughts on whether ALQ is worth a buy?

    Commenter
    thoughts??
    Location
    Date and time
    November 25, 2013, 12:39PM
    • I do think ALQ is worth a buy.

      However, the market is punishing mining services again, after the Worley Parsons result.

      You should be able to pick it up significantly cheaper soon

      Commenter
      igroki
      Location
      Date and time
      November 25, 2013, 12:49PM
  • I think the best way to keep an interest in SBM and NCM is to start a book on where their bottom is. Winner takes one or both companies. I keep the cash.

    Commenter
    GeoPerth
    Location
    Date and time
    November 25, 2013, 11:58AM
    • aaaah 0.001 and 0.01 in no particular order.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 12:14PM
    • Add PRU to that.

      PRU would do much better to just stick to exploration and selling the actual production rights to others when they find gold. They were good at that...

      Commenter
      X
      Location
      Melbourne
      Date and time
      November 25, 2013, 12:21PM
    • Severely fallen out of favour. I recall SBM were recommended as a Strong Buy by most houses when at 1.90 ....... Then the wheels fell off and since then the billy cart has been careering down the hill out of control. Eventually it will get to the bottom of the hill, but will that be with the cart still intact, or with bits lying all over the ground !

      Commenter
      Pierre
      Location
      Date and time
      November 25, 2013, 1:34PM
  • buy CFX 2.02
    buy GOZ 2.55
    buy EPX 1.79
    divd for xmas yaaa
    queue for SGP @ 3.88
    top up some HSN 1.09
    goldminers nah stay away....ouch @ X for BDR

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    November 25, 2013, 11:48AM
    • I think BDR will bounce back this afternoon - it's worth a lot more than 0.765, the gold sector as a whole is trading flat today rather than falling, and most of the selling this morning seemed to be from a few sell orders for >100000 shares each. Probably someone hoping to trigger stop-loss orders before buying them back at a lower price.

      Commenter
      X
      Location
      Melbourne
      Date and time
      November 25, 2013, 12:08PM
    • Bought SGP at $3.85. They pay a 6% div mid December. Can't figure out why they had a recent drop other than AMP selling some of their shares. Handy div to pay for a Tassie holiday.

      Commenter
      Billy
      Location
      Date and time
      November 25, 2013, 12:38PM
    • With EPX you get a div for Xmas & Easter.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 25, 2013, 1:05PM
  • Allan's gone back to 1997 looking for 2500.

    Commenter
    Contrarian
    Location
    Date and time
    November 25, 2013, 11:36AM
    • What a complete dud, tipping AORDs at 3500 with NO timeframe whatsoever.
      Has zero credibility!

      Just do the EXACT OPPOSITE of what he says & make moolah :)

      Commenter
      This_B$_Al_has_nfi
      Location
      Date and time
      November 25, 2013, 3:51PM
  • no allan?

    Commenter
    BOQMAN
    Location
    Date and time
    November 25, 2013, 11:22AM
    • Mum threw him out for not paying his board.
      Looking for new share household.
      Yikes...

      Commenter
      Summit County soon..
      Location
      ex-Colorado
      Date and time
      November 25, 2013, 11:41AM
    • i guess the BOQ gift posted in October may have something to do with his absence.

      http://www.theage.com.au/business/markets-live/markets-live-best-day-in-three-months-20131011-2vc5g.html

      Commenter
      shorter stalker
      Location
      Date and time
      November 25, 2013, 11:46AM
    • I think I saw him at the Prahran Post Office waiting for his DVDs which he ordered 3 weeks ago from some dodgy third world vendor in order to save AUD50c on each!

      'Coz, you know, retail is dead and all....:-)

      Commenter
      Life Is Good
      Location
      The Real World
      Date and time
      November 25, 2013, 11:47AM
    • Might actually be WORKing in that Business of his...

      Commenter
      Prince Eugen
      Location
      Date and time
      November 25, 2013, 11:59AM
  • What's happening with BDR today? Down 8% so far - and that's with the rest of the gold sector trading flat!

    Commenter
    X
    Location
    Melbourne
    Date and time
    November 25, 2013, 11:21AM
    • i was thinking bout jumping in also but read alot about gold flat for foreseeble......should have let me buy first as i have the affect of instant price drop on purchase, then would have been a bit cheaper for your large dive in....long

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 11:50AM
    • Others are catching up. I'm increasing my BDR holding on the way down. Hopefully gold price trend reverses or market catches on to the fact that much of BDR production is hedged at quite high prices.

      Commenter
      Yin or yang
      Location
      Date and time
      November 25, 2013, 11:58AM
    • It wouldn't even matter too much if it wasn't hedged.

      BDR's production costs are so low that, even if they hadn't hedged it and gold dropped to $1000, many other miners would be out of business while BDR would still be making $500 or so per ounce.

      Commenter
      X
      Location
      Melbourne
      Date and time
      November 25, 2013, 12:15PM
    • I got in this morning @ $0.775

      My track record on gold miners is atrocious though, here's hoping

      Commenter
      igroki
      Location
      Date and time
      November 25, 2013, 12:22PM
    • that debt level...is that a concern maybe?
      MQG dumping spooked everyone else?

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 12:27PM
    • @bearshapedbull. They have started paying off the debt. It will disappear pretty fast at profits of >US$1000 per ounce.

      Commenter
      Yin or yang
      Location
      Date and time
      November 25, 2013, 12:54PM
  • “We do need to think through what we put in place to stimulate first-home buyers"....St George Bank George Frazis.....Surely the vested interest of a banker should be removed from spruiking his own pay packet? No ones falling for it anymore mate. FHB are not being conned anymore. Too smart, too savvy. The only people buying are foreigners and people that have no idea of what value means.

    Commenter
    JohnBB
    Location
    Date and time
    November 25, 2013, 11:18AM
  • An auction for the "Castle" at The Sovereign Islands failed to find a buyer at the weekend with the top bid millions below the owner's expectations.

    Bidding started at $3 million and peaked at $5.05 million before the house was passed in by auctioneer and Harcourts Coastal principal Dane Atherton on a vendor bid of $7 million.

    This joke of a property (a medieval castle design in the sub tropics? Really?) was listed for sale in 2010 for $20 million. True story lmao!

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    November 25, 2013, 11:18AM
    • Chinese bidders ?

      Commenter
      Oracle
      Location
      2233
      Date and time
      November 25, 2013, 11:36AM
    • Yep...There was an EXISTING property that sold for 45% above its' reserve in Sydney on the WE. The agent said ALL foreign bidders. Can we have this sale investigated please FIRB? I can see there are going to be riots if this continues. GenY are justifiably getting very angry.

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 11:40AM
    • Agree, what a joke. We all know if you want to stay in a Castle you have to go authentic, like this in Malaysia http://www.colmartropicale.com.my/

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 25, 2013, 11:40AM
    • @BB. If all this foreign investment dried up we would be cactus. Govt after govt have relied on foreign cash and a growing population to balance the books. Its the same laziness that pervades most facets of aussie business. IE always look for a shortcut. Look for a lazy management way to do things. Only reluctantly look to changes in management practices to increase productivity. Always attack working conditions as a way of making an easy extra buck. Its called pragmatism and it is dumb.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      November 25, 2013, 12:57PM
    • @bearly gruntled...Agree entirely...One day it will dry up because there'll be nothing left to sell. The people making the policies now will be long gone and left will be our kids that we've given a hospital pass. If Australians were educated about what's going on...i.e. we're importing consumers and selling to foreigners to give us all a slightly better life now and complete disaster down the track...Then, I think most good people would forgo the ridiculous level of largesse we now enjoy for the sake of their kids. The ignorance is astounding and I can't stand watching it unfold....OMG, they're our own kids that we're shafting.

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 1:22PM
    • That place is a joke. Was staying at my girlfriends parents holiday house on Sovereign Island over Christmas last year and couldn't believe when I saw it - looked like a haunted castle! I laughed every time I went past it on my morning jog. Couldn't believe someone would build it to begin with. Clearly they have no taste and idea, hence why the asking price is still so exhorbitant... what a joke.

      Commenter
      WPHT
      Location
      Melbourne
      Date and time
      November 25, 2013, 1:38PM
    • At a recent dinner, there was a young Chinese lady ( approx 35 yo ) who was in town to purchase a property. She had $17 mill cash to play with, and was very relaxed about the probability of a large drop in value! We are out of touch with how they operate.

      Commenter
      Pierre
      Location
      Date and time
      November 25, 2013, 1:40PM
    • @WPHT it apparently cost over $8 mil to build and the land was bought around the peak in the Gold Coast property price bubble. It is an ugly, impractical, and embarrassing monument to bad taste and financial incompetence.

      There are some nice places around the Sovereign Islands and Sanctuary Cove area though. They typically sell for around $1.2 to $3 mil and rent for between $1000 and $1500 a week since the bubble burst.

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      November 25, 2013, 2:33PM
    • These foreign kleptocrats have no idea. They think that they can escape the anger that awaits them in China from their own plebs. This is causing immense frustration among ordinary Australians and rapidly escalating anger with our own political system.. In the long run this will curdle into intense political and ethnic and class hatred and then a match would cause an explosion. No amount of PC propaganda will be able to stop it.

      Commenter
      Rev Jim Jones
      Location
      History never repeats but it ryhmes
      Date and time
      November 25, 2013, 3:05PM
  • How can our economy thrive while we're all stuck in traffic for longer and longer periods?. Not one mention of over population in the ...."big traffic solutions debate".......What a deluded bunch we Australians are. Seriously, over/growing population is at the core of all our problems. Given 73% of us don't want it, when will we debate this?

    Commenter
    JohnBB
    Location
    Date and time
    November 25, 2013, 11:14AM
    • Indeed John - couples with where we should be putting them also, i.e. West side of the Divide not West(ern) suburbs...

      Commenter
      Prince Eugen
      Location
      Date and time
      November 25, 2013, 11:54AM
    • You are delusional. Sydney should be able to cope with all of Australia's population. It's all about planning.

      Commenter
      Andrew137
      Location
      Date and time
      November 25, 2013, 12:01PM
    • @Andrew137...No, not delusional...I live here and there is no planning, just more people using the same infrastructure..I think it's you Andrew137 that's delusional.

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 12:20PM
    • @Andrew137....The pro population argument is ridiculous. Global societies have lived with a mass growing population since the industrial revolution. A very short time. In this 200 odd years, we've killed almost everything and you say we can populate more. Ridiculous and very ignorant of the broader issues.

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 12:29PM
    • If you think Australia's issues are due to the fact we have a 23million population - you are having a laugh.

      Commenter
      Andrew137
      Location
      Date and time
      November 25, 2013, 1:27PM
    • @Andrew137....All of Australia's issues are from having a population that's growing rapidly. You pose a problem and tell you how it's population that's causing it. Any problem Take the challenge.

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 1:36PM
    • @JohnBB public transport in this country is a joke, it runs infequently, has constant delays or services cancelled.
      Compared to other major cities, Tokyo, Hong Kong, Singapore with larger populations how is the population making this issue?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 25, 2013, 2:11PM
    • @Wwwish Lion......Are you serious? Have you even contemplated that for ten seconds?

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 2:20PM
    • Exactly. Tokyo, population wise is half the size of Australia. The issue is not population, the issue is the way the city is structured in terms of infrastructure, public transport etc. and that is a result of poor planning and management.

      Commenter
      Andrew137
      Location
      Date and time
      November 25, 2013, 2:45PM
    • @JohnBB - I took the challenge but no answer, are you serious?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 25, 2013, 3:13PM
    • The population is growing faster than the infrastructure. Congestion (too many people) is causing delays. Next.

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 3:39PM
    • The infrastructure was never good enough to begin with. Population growth may add to the problem, but it's not the root nor the solution.

      Commenter
      Andrew137
      Location
      Date and time
      November 25, 2013, 3:49PM
    • @JohnBB, a lack of planning by successive governments is the cause. Everyone knew the population was growing but did nothing to prepare for it.
      And even with your population argument it does not address how a growing population causes infrequent services, Tokyo a train runs every 4 minutes until midnight, here outside of peak hour its lucky to be every 20 minutes.
      I suppose you will tell me if we had less people trains would run more frequently?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 25, 2013, 3:50PM
    • @Wwwish Lion...I agree..Tell politicians, no more people until infrastructure has caught up and house prices have come down....

      Commenter
      JohnBB
      Location
      Date and time
      November 25, 2013, 4:03PM
  • ASIC is finally getting into those privileged share traders.

    http://www.theage.com.au/business/markets/asic-targets-insider-traders-20131125-2y4q7.html

    I would like to think Fairfax's reporting of the recent DJs directors' buying contributed to this. Kudos to you and your colleagues, eds!

    Commenter
    Bud Fox
    Location
    Date and time
    November 25, 2013, 10:47AM
    • Flattery will get you everywhere, Bud.

      Commenter
      Ed
      Location
      Date and time
      November 25, 2013, 10:51AM
    • ASIC seem to spend alot of time,$ and effort on investigations...its the end results that count and they have pretty much failed to deliver especially in the failings of dodgy investment companies that shouldn't have even been trading in the first place. I think a large overhaul of the code of conduct,due diligence is needed....but whos going to enforce it?....ASIC well more water treading.IMHO

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 10:55AM
    • I am a massive critic of ASIC. But i do not think that sacking the top brass is the solution. They have simply lost their way and have been seduced by the big players. The solution is easy, a directive (published) from government making it clear as day who they are their to represent, all shareholders. I was alarmed to see in the Age article the other day high praise from the ANZ, surely the most damning evidence i have seen of where ASIC currently sit. I would add one ameliorative factor to their performance; a legal fraternity that all still wear the old school tie and can manage to make the most open and shut cases seem completely opaque. The judges also need a similar letter from the government reminding them that they also act on behalf of all the people and not only their mates and those who can afford to use vast amounts of funds dragging issues through the courts until even the most tenacious has lost the will to live.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 11:02AM
    • Over the last year or so I have sent ASIC examples of dodgy trades in at least 8 stocks. Apart from a form letter saying "thanks for letting us know but we can't disclose details of investigations" I have not seen any other response. I can't believe that they are serious until I see some results.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 25, 2013, 11:06AM
    • Lets have a new investigation into ASIC by ???? to see how much corruption is inside their own ranks....

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 11:39AM
    • I guess one way of getting them to perform is through public embarassment.

      If the press continually reports dodgy trades, and subtly mentions that ASIC does not know about them as yet...

      mitch - perhaps you should send that sort of information to Fairfax next time?

      Commenter
      Bud Fox
      Location
      Date and time
      November 25, 2013, 11:48AM
  • If bitcoin gets recognised as an online currency the annonymous nature of this makes many transactions illegal under anti money laundering legislations in most countries. The best way for governments to control this is to recognise the currency and then demand know your customer obligations are met for significant virtual cash transactions.
    All the luster of this fad will be diminished.

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    November 25, 2013, 10:46AM
    • Bitcoin is as worthless as my pet rock. If someone wants to pay me $600 for it, great. Any of us could invent a bit type coin and sell them to suckers and criminals online. How much has the originator of bitcoin made? Don't rule out that bitcoin transactions are carefully monitored by the police.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      November 25, 2013, 11:08AM
    • "Carefully monitored by the Police". Is that why those engaged in cyber extortion in encrypting your critical data on your hard drives insist on payment by Bitcoin.
      http://www.news.com.au/technology/online/cryptolocker-virus-holds-your-computer-for-ransom/story-fnjwnj25-1226754940841
      BACKUP BACKUP BACKUP

      Commenter
      mitch of ACT
      Location
      Date and time
      November 25, 2013, 11:37AM
    • Re bitcoin, a currency backed by nothing and nobody whose value is determined only by what speculators are willing to pay for it.

      Sounds like it fits right in with our current economy/society.

      Commenter
      Basic
      Location
      Date and time
      November 25, 2013, 11:45AM
    • Hehe basic, touche my friend, touche.

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 25, 2013, 12:00PM
    • Lots of interest in China for bitcoin...so theres a large market to target? maybe they want to hedge bitcoins against all the US treasury bonds they hold....in case of a collapse.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 12:10PM
    • @BearShapedBull its popular in China with Communist Party Members trying to launder corrupt money out of China.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 25, 2013, 2:02PM
    • @Bearly Gruntled Bitcoin is as worthless as my pet rock.

      Using Bitcoin would save Australian businesses $8 BILLION in merchant fees paid to the banks per year.

      That's quite a rock you have there.

      Commenter
      Stufan
      Location
      Date and time
      November 25, 2013, 2:54PM
  • todays the day to decide on another SPP, anyone else in on CSS,noticed quite a jump last week when SPP price is determined by 5 day trading price - 20%....was 0.032 at time of offer,jumped to 0.046 after timely profit guidance release....coincidence of course.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    November 25, 2013, 10:37AM
    • When in doubt
      Stay out

      Commenter
      mitch of ACT
      Location
      Date and time
      November 25, 2013, 10:55AM
    • Umm the SPP clearly states that it is the lower of 0.032 or a 20% discount to the VWAP

      Commenter
      BuyHighSellLow
      Location
      Date and time
      November 25, 2013, 2:16PM
    • oh ok,my bad...might grab the minimum and see what happens,thx for input.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 2:37PM
  • Lord give me strength, it was taper all last week and now this week, nice and early, we have the bubble raise its head. You analysts must have more in your arsenal than taper and bubble; no i guess not.

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 25, 2013, 10:26AM
    • Oil bubble?

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 25, 2013, 10:32AM
    • It appears as if all 'rational' investing/trading has gone out the window. Large numbers of people basing their decisions entirely on commentary from US Fed members about whether bond purchase tapering will happen sooner rather than later.

      You may as well use tea leaves.

      Commenter
      Basic
      Location
      Date and time
      November 25, 2013, 10:45AM
    • They do Basic, use tea leaves i mean, and when they run out of tea they wait till the close and say "profit taking" or "lack of confidence in the market" depending which way the market has gone.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 11:12AM
  • dont forget the ceiling is 5400...

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    November 25, 2013, 10:17AM
    • I would say the most important thing for this year is the deal struck last night with Iran.

      Look for USD rally + gold down, weaker AUD, possible interest rate rise Dec-Jan.
      That's my take (will be backing up the truck on gold early next yr. around 1000 USD).

      2c + fire

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 25, 2013, 10:20AM
    • @Fiat. The Iran deal has the smell of an Obama smokescreen. In trouble at home with Obamacare he is desperate for a diversion. High chance of it unravelling under Israeli opposition. The increasing bellicose stance of China over those islands should have golds hair standing on end. The speed at which China is ramping up their bluster should worry us all.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      November 25, 2013, 11:01AM
    • Bearly, it's all about the USD and trying to find people to support it. It's possibly the re-start of Petrodollar Mk.2, twists however, to come.

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 25, 2013, 11:59AM
  • Into CBA calls at 76.39 on Fri....Out of CBA calls at 76.94 this morning...

    Good Trading, Everyone!

    Commenter
    mirage
    Location
    Date and time
    November 25, 2013, 10:07AM
  • For the gold nuts on here, an article about why Indians like (understatement) gold. Unfortunately their insatiable demand is hurting the Indian economy and the Indian govt’s attempts to curb that demand won’t help the price of gold. http://www.economist.com/blogs/economist-explains/2013/11/economist-explains-11

    Commenter
    mitch of ACT
    Location
    Date and time
    November 25, 2013, 10:06AM
    • Mah, it's from the Economist.

      The Indian Govt. tried to shut-down the gold imports at the behest of the West, it failed. The gold gets imported thru other regions (e.g. Pakistan) via the black-market.
      The thing that is "hurting" the Indian economy is bad policy. The new banker they have got in, however, seems to be made of the right stuff.

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 25, 2013, 10:23AM
  • Love the Headlines BUT It's MONDAY

    Commenter
    Jonaze
    Location
    Sydney
    Date and time
    November 25, 2013, 10:03AM
  • We have a floating currency. This allows for the market to determine the value of the dollar and its place in the world. We also have the RBA who threaten people with billion dollar intervention if they do not sell the currency down. Basically i can invest my money in the dollar but if my investment goes in my favour then the RBA will intervene with money they don't own to manipulate my investment. Would this be allowed if it were shares we are talking about, and yes I know it goes on but never with the big boys openly announcing they are going to manipulate the price of the shares, even ASIC might win a case like that (maybe not, but you get my point). If the RBA want to improve our trading status then attack the large wages and costs of the manufacturing industries. Iron ore train drivers paid a million dollars a year, coal excavators $800,000, extreme examples but representative of what we have to cope with.

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 25, 2013, 10:01AM
    • Continuing on - Ford, Holden and Toyota are about to go out of business because they can not produce cars we want at prices that are comparable with the rest of the world. Is the RBA going to intervene here and threaten those of us who buy imported cars, not bloody likely, the government is quite capable of doing that. They have sunk billions into an overpriced under-productive industry, and may be faced with billions more to pay out; with what these industries can now not pay in workers entitlements. Every time a Holden passes by in the street, you smile at the driver in expectation of a lift, cause you are paying for his car. It may not be exactly keyed to the RBA but it is what the RBA is trying to cover up by manipulating the dollar. Apropos of this - how does the obscene subsidy on 4 wheel drive fit into the scheme of things.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 10:13AM
    • The BIS and other central banks are actively intervening in the currency/FX markets via gold swaps and other chicanery.
      Do some research....

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 25, 2013, 10:16AM
    • Those ridiculous wages are what happens when everyone wants to invest in new resource projects at the same time in remote locations.

      The owners of the capital needed to make better decisions.

      The RBA was already 'attacking large wages and costs of manufacturing industries' with macro settings that were hollowing them out.

      If other central banks are openly setting policies that distort the currencies value and seek to increase their export competitiveness, we need to do the same.

      Commenter
      Opinion Only
      Location
      Melbourne
      Date and time
      November 25, 2013, 10:18AM
    • Bye Bye - done my research and and it does not alter the fact that economically/industry speaking we are a 3rd world country living a 1st world lifestyle.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 10:23AM
    • Peter it's ok, reality will kick in soon enough.
      It will be fun...

      Perhaps long infrastructure/commodities, short debt-based instruments (e.g. bonds/housing). I'd say short the AUD for the next few months, but I suspect that next year we'll see pretty substantial moves in the FX markets across all irredeemable paper monies, so I'd be very careful and very hesitant there.

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 25, 2013, 10:38AM
    • This graph of the ASX in USD terms (http://twitter.com/David_Scutt/status/404751331748900864/photo/1) is a demonstration caused as a result of Australia having a less than stable and reliable currency (>15% moves within a few months), compared to other major currencies such as Europe, UK, Switzerland or Canada, that also floats but has a far smaller beta / volatility, showing why international investors are reluctant to put any money here if they can’t even trust the currency to remain stable.

      Made worst by the idiotic RBA that continues to believe and actually cheers on a lower AUD, believing that screwing international investors (as well as ordinary consumers and businesses wanting to purchase products from overseas) is acceptable, instead of looking at the ridiculous labour and real estate costs in this country that makes Australia uncompetitive. Relying on real estate and housing construction to boost the economy is not a real or sustainable economy.

      Commenter
      Mike
      Location
      Date and time
      November 25, 2013, 10:40AM
    • Peter, the car industry subsidies costs every Australian $18 a year, or about 5 coffees a year - hardly the unbearable, massive impost people are making it out to be. Germany spends far more public money per capita to support its car industry. Furthermore, the Commodore, the Cruze and the Camry are all top ten sellers and in an incredibly fragmented market like ours, that's no small achievement.

      The Australian dollar will resume its downward path next year as the economy slows, 85 cents is almost a cert as the slowdown in mining related construction continues. This could not be a worse moment to go scorched earth on an industry that still employs tens of thousands and affects many thousands more, especially in the outer suburban Ponzi property suburbs of Melbourne, Adelaide.

      There's a nice map in this article showing how much money Melbourne's suburbs earn each year just from the car parts industry. The multiplier effect on those suburbs and towns would be devastating and at the worst possible moment. If you really want tax savings, go after that disgusting rort the FBT, which costs almost as much as the car industry subsidies every year.

      http://www.theage.com.au/federal-politics/political-news/closure-of-holden-and-toyota-factories-would-leave-1b-in-unfunded-worker-entitlements-20131124-2y431.html
      .

      Commenter
      Jim
      Location
      Date and time
      November 25, 2013, 10:53AM
    • Jim, agree with you on the FBT. Disagree on the rest. It may be only $18, but its my $18 and i do not want it going in the pockets of Holden workers.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 11:07AM
    • If you think subsidies to the car industry are expensive, discount that $18 pa by the per capita amount that will have to be paid to the 30,000 workers who lose their jobs if local manufacturers close. The gov't will have to pay out more in unemployment benefits and lose the tax take from wages and profits. Add to that the social costs of all of those newly unemployed.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 25, 2013, 11:43AM
    • Peter,
      I agree the government should be tough in the negotiations, like eliminating the workers 17 % leave loadings and threaten the car makers with indefinite lockout.from our market if they're unreasonable but your argument is, economically speaking, the same as cutting off your nose to spite your face. The roll on effects just as the economy is weakening and re adjusting would be enormous and the welfare bill will be much worse than the current subsidies and it will last for years.

      And its not only the car industry that will be whacked. The steel industry and much of the chemical industry in this country will go because the car industry and suppliers are big customers for their steels, plastics, paints and synthetic fibres.

      Commenter
      Jim
      Location
      Date and time
      November 25, 2013, 11:52AM
    • Jim, yes i agree with you on much of what you say, but surely there has to come a time when we stop this. The end result is that fewer and fewer people will be subsidizing the wages of more and more as we continue to live beyond our means. How do we get of the merry go round without breaking eggs. Sorry for the mixed metaphors.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 25, 2013, 12:06PM
    • I'm not at all against what you say and if push comes to shove, we'll goodbye fellas but for now I think there are things that can be done, get rid of the FBT, and tough negotiations with the car unions and companies- the government really holds the aces and shouldn't let the car companies intimidate them, we can literally lock them out of our market in our national interest and who said we should be the only virgin in the global car market brothel. The inevitalble fall in the oz dollar will help too.

      <end rant>

      Commenter
      Jim
      Location
      Date and time
      November 25, 2013, 12:35PM
  • RE : online shopping purchases, just get them to mark it as a gift ;)

    Retailers = rorters

    Commenter
    its over for retail
    Location
    Date and time
    November 25, 2013, 9:59AM
Comments are now closed