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Business

Markets Live: Six weeks of gains

Date

The Australian market ends lower, trimming some of yesterday's strong gains that were sparked by the Fed's surprise decision not to taper stimulus.

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And that's the week from us here at Markets Live. Thanks for being with us, have a great weekend.

Click here for a full wrap of the day's session

Boart Longyear is living on the edge, Michael West writes in this very readable analysis of the drilling services provider's woes:

If Boart Longyear was a mate down at the pub, he’d be the sort of mate who’d hit you up for a few dollars, just to tide him over. Then he’d nip down to the TAB, punt the lot on the fourth at Doomben and be back in no time at all with another hard-luck story.

But shareholders in the world’s largest drilling services company are unlikely to be quite as kind and patient as the proverbial mate at the pub.

The stock went into a trading halt this morning. Another debt deal was struck overnight in the US to keep it afloat but the pricing is yet to be revealed. And even when it is, Boart Longyear’s survival is not assured, except perhaps in the optimistic eventuality of a sharp rebound in demand for drill rigs.

The stock, nicknamed Borat by its investment bankers, continues to live on the edge. It may well be the biggest mining services player in the world, providing machinery to the likes of BHP Billiton and Rio, but it has always been a punt with shareholder funds.

And so it is a good thing that new boss Richard O’Brien formerly headed up gold juggernaut and Boart customer Newmont Mining before assuming what might uncharitably be deemed one of the great hospital passes of the Australian sharemarket. Boart shareholders need all the experience O’Brien can offer.

O’Brien can blame his predecessors for his present travails, and he has bought Boart some time with this week’s refinancing. Yet his challenge, whatever the result of this latest debt raising, is nowhere better enshrined than in the company’s earnings trajectory.

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In a trading halt: Boart Longyear.

In a trading halt: Boart Longyear.

And for the week:

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Here are the best and worst performers for the day from the ASX200:

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Japan's Nikkei share average fell 0.2 per cent, stepping back from two-month highs as investors locked in profits on recent gainers before a long weekend.

After all the excitement we saw in late US trade and into Asian trade yesterday, flows on the desk have been more reserved today, IG's Chris Weston notes:

  • Perhaps this has been a reflection of the efficient re-pricing of asset classes after the Fed’s uber-dovish stance.
  • Maybe it’s a reflection that the Fed are keeping the balance sheet constant, because of the fiscal issues of which we are seeing front and centre today, with the House set to vote today on stopgap measures linked to Obamacare defunding.
  • Clearly the potential government shutdown is holding the bulls back despite monetary conditions positive for a further rip higher in equities. The overnight rise in yields probably didn’t help either.
  • We have seen no expression of concern from clients at all around the German elections (ED: on Sunday; Merkel tipped to win but may have to enter a 'grand coalition' with the Social Democrats).

The stock market has closed lower, trimming some of the strong gains sparked by yesterday's surprise Fed decision to hold off on tapering stimulus.

The benchmark S&P/ASX200 index fell 18.8 points, or 0.4 per cent, to 5276.7, while the broader All Ords lost 17.8 points, or 0.3 per cent, to 5270.8.

Among the major sectors, materials slid 0.9 per cent, financials lost 0.4 per cent, while consumer staples gained 0.5 per cent and energy stocks added 0.4 per cent.

Despite today's losses, the ASX managed to put on 1 per cent for the week, notching up a sixth straight week of gains.

And here's another pessimistic, and slightly controversial prediction (hey, it's Friday): the partial break up of the eurozone is inevitable, but it's unlikely to happen soon, Colonial First State chief investment officer, fixed interest and credit Paul Griffiths says:

  • I think what you'll get is a core group. I'm not going to name the countries because I don't want to miss one but if you take that group of countries generally in northern Europe.
  • If you take those economies, they move in lock-step with one another and that is the pre-condition I'm talking about. There will be, what should have happened originally, a group of countries who are aligned and that can work.
  • They will put huge resources on keeping Portugal, Greece and Ireland inside.
  • I think ultimately a monetary union without fiscal or political union is doomed to failure.
  • I do see that ultimate euro crisis coming, if you really push me for a date, I would put it in a multiple year time-frame.

Only fools ignore bubble trouble, Christopher Joye writes over at the AFR:

With a new housing cycle comes yet another heated debate that is already flushing out manifest errors and conflict-driven deceptions. Should we care? My word.

Residential property is the biggest source of household wealth and underlies the most important asset – home loans – held by Australia’s colossal and concentrated banking industry, which accounts for 30 per cent of the sharemarket’s value. There is $4 trillion of housing and $1.3 trillion of debt held against it. It is our most significant investment class. So are we in the throes of a bubble, and should we worry about the risks of one materialising?

Much of the data the Reserve Bank of Australia uses to better understand housing dynamics come from companies I worked with. This information and analysis once gave me cautious optimism about the outlook. But I am more worried today. And I’d submit that anyone not investing serious time contemplating housing hazards, including the prospect of destabilising bubbles, should wake up.

What gives me pause is that national house price growth now looks to be running at three times wages. In Sydney the gap is even greater. And what is unprecedented is that Australia’s housing upswing is coinciding with the cheapest mortgage rates ever. In the boom of the early 2000s, discounted home loan costs troughed at 6.15 per cent, or 100 basis points higher than current rates.

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Growing faster than wages

Growing faster than wages

Flight Centre is altering its name to highlight that it offers more than airfares.

The company will be known as Flight Centre Travel Group, if shareholders approve the change at an annual general meeting in October.

Managing director Graham Turner said the new name would reflect the company's growth into a retailer of many holiday and corporate travel products.

The decision isn't helping its share price - Flight Centre is down 1.9 per cent.

National Australia Bank is set to launch a new push into digital payments through a product called NAB Flik, as competition heats up in mobile banking.

This month NAB has registered a trademark for the logo  ‘‘NAB Flik’’ with IP Australia, including an icon that appears to have been designed for a smart phone. The bank has also registered a website under the same name.

A spokesman for the bank would not comment on the initiative when contacted by BusinessDay today. However, the service is tipped to be another push by a bank to win over consumers through mobile digital payments technology, which gives customers the ability to carry out a growing range of financial tasks on the go.

The dollar is taking a break after yesterday's rally, trading around 94.5 US cents, with dealers saying it it's being contained by speculation its recent gains could see the Reserve Bank cut interest rates again to cushion the economy.

The Aussie spiked to a three-month high of 95.30 yesterday after the US Federal Reserve surprised markets by leaving its stimulus intact. Even after pulling back from that peak, the Aussie is still up more than 5 cents this month.

"It wouldn't have been happy with the Aussie around 95.5 cents and I expect the RBA will have an easing bias at its policy meeting on October 1," Joseph Capurso, a rate strategist at Commonwealth Bank.

Ikea founder Ingvar Kamprad was forced to hand over billions of dollars to his sons following a bitter family feud, according to a new book on the global furniture giant.

The revelation appeared yesterday in business daily Dagens Industri which published excerpts from Ikea on the Road to the Future, co-authored by former Ikea executive Lennart Dahlgren, journalist Stellan Bjoerk and economist Karl von Schulzenheim.

The book, due to go on sale on September 27, contradicts the official version of the company's history which holds that Kamprad signed over his empire to a complex network of overseas foundations in 1982.

Here's more

Family feud: IKEA founder Ingvar Kamprad.

Family feud: IKEA founder Ingvar Kamprad. Photo: AP

One of Gina Rinehart’s closest lieutenants in the Hancock Prospecting empire warned her son he would be hunted down like Christopher Skase unless he ceded control of the family’s multibillion dollar trust to his mother.

Hancock Prospecting chief financial officer Jay Newby sent a series of explosive emails, which were lodged as part of the court case, to John Hancock a day after the mining magnate warned her four children they would be bankrupted if the trust was allowed to vest on September 6, 2011.

In one email, dated September 4, Mr Newby wrote to Mr Hancock and copied Mrs Rinehart:

"Remember what happened to Skase when he tried to escape being brought back to Australia when bankrupt. The government simply doesn’t let people off for not paying due taxation."

Christopher Skase became a fugitive when he fled Australia for Spain in 1991 after his business empire collapsed.

In the same email, Mr Newby says: "Please don't think for one second this means you can enjoy your Thai palace should a court appointed designate be appointed for your bankruptcy."

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Private Rinehart emails revealed (Video Thumbnail) Click to play video

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Private Rinehart emails revealed

Adele Ferguson gives a preview of her weekend story about the Rinehart family feud, which will include private emails between John Hancock, his mother and the CFO of Hancock Prospecting.

PT2M2S http://www.canberratimes.com.au/action/externalEmbeddedPlayer?id=d-2u3xk 620 349
Short seller ... Jim Chanos

Short seller ... Jim Chanos

Shares in Fortescue are still being sold short by New York hedge fund manager Jim Chanos, putting him at odds with the vast majority of the local investment community.

Speaking one year after Fortescue lurched into a liquidity crisis during September 2012, Mr Chanos said he still believed Fortescue was vulnerable to a slowdown in China, despite the recent strength of the iron ore price and the rapid growth of Fortescue's iron ore export volumes.

"If you believe as we do strongly that the Chinese credit driven investment boom has to ultimately come to no good, then there is probably no better place to be short than iron ore," he said, as part of an in-depth look at Fortescue's debt challenge that will be published in BusinessDay on Saturday.

Today, Fortescue shares are down 1.9 per cent to $4.495.

Read more

One of the key questions that we have touched on over the past day after the Fed's decision pushed the dollar higher is whether the RBA is set to cut rates again.

Economists have been mixed in their reactions. Citi economists say that markets will price in some risk of another rate cut by the RBA as the US and Australian economies remain mixed and the Australian dollar hovers at elevated levels. A jump in the unemployment rate and soft CPI data could make a November cut possible, they say.

But they stress that "the bar for another cut is now much higher than previously"

"We expect the RBA to remain on hold and continue with its guidance that it neither closes off the possibility of reducing rates further nor wishes to signal an imminent intention to reduce rates.

"If the Fed’s decision this week only represents a tactical delay to tapering and the related lift in the AUD is temporary, then the RBA can remain more neutral," they write in a research note today.

In contrast, Macquarie Securities' analysts take the opposite view (bear in mind that Macquarie has been more bearish about the Australian economy).

"In our view, the RBA would need to alter its rhetoric from the 'glass-half full' approach that it has maintained over the last two years," they state in a research note.

ANZ analysts say now might be the best time for borrowers to fix their rates while they are "very low and the potential for rates to move a lot higher is evident from history".

Interest rate strategist Zoe McHugh and currency strategist Andrew Salter have crunched the numbers on the RBA's easing and tightening cycles. They say while ANZ economists are forecasting a last 25 basis points rate cut in November, markets are almost fully priced for such an outcome and that any last easing would not lower term rates further.

"Ignoring the possibility of one further cut, as the RBA last cut rates in August this year, it is reasonable based upon history to expect it to be on hold until April 2014, which could be as early as January or late as September next year. Using this metric, the market’s expectation that the first hike comes in February 2015 (fully priced) does not appear to be too tight," MrHugh and Salter write in a research note today.

"We recognise that at this point in the cycle, the timing of the last cut is very important to market pricing and the RBA still has an easing bias while the data have been unable to yet confirm that rate hikes are imminent. Nonetheless, term rates are very low and the potential for rates to move a lot higher is evident from history."

Data from the RBA yesterday showed borrowers have been using the low rates to pay down their mortgages quicker.

NAB's currency strategists have updated their year-end forecasts for the Australian dollar after the Fed's decision to push back a cut to its stimulus program saw the currency rise above 95 US cents.

NAB's new year-end forecast for the AUD/USD now stands at 92 US cents, as compared to their previous expectation of 86 US cents.

They've also revised up their forecasts for 2014: 

  • March: From 84 to 90 US cents
  • June: From 83 to 88 US cents
  • September: From 81 to 86 US cents
  • December: From 80 to 84 US cents

The lift in the forecasts - which still seen the Australian dollar on a downward trend - reflect the support for emerging markets that the Fed's decision has given, which removes one source of recent Australian dollar weakness, NAB's Ray Attrill says.

Resources giant BHP Billiton has opened a $US1.5 billion gas plant it says will supply 20 per cent of Western Australia’s domestic gas for the next two decades.

The first gas started flowing in August, almost three years after BHP gave the green light to develop the Macedon field, about 100 kilometres off the north west coast of Western Australia.

The Macedon plant includes four offshore production wells and an onshore gas treatment plant at Onslow.
It has a production capacity of up to 200 terrajoules of gas per day, making it the company’s largest domestic gas operation.

BHP Billiton’s global head of conventional oil and gas, Steve Pastor, said the Macedon project was expected to supply domestic gas for the wholesale market in Western Australia until at least 2033.

BHP shares are down 1 per cent to $36.32.

So it begins. WA Premier Colin Barnett has started a political process that will inevitably lead to significant tax reform, including his desired increase in the GST's scope and/or rate, writes BusinessDay's Michael Pascoe.

How long the process takes will depend upon the integrity of our state and federal politicians. Yes, it is likely to be many years.

Barnett called for leadership on the GST issue from Tony Abbott, but it's not the federal government that needs tax reform, let alone the political cost of broken promises and scare campaigns. The “leadership” is going to have to come from those who most urgently require it – the states. Only when the states unite in demanding change will Abbott be able to wash his hands of it, pointing out as his treasurer already has that the GST is the states' tax merely administered by the commonwealth.

One of the achievements of the 2011 tax summit (that the then-opposition childishly snubbed), was to spell out that the states are all hurtling at varying speeds towards a fiscal brick wall. They've trashed their own tax bases and show little inclination to take politically unpopular decisions to fix their inequitable and damaging revenue sources, but they're all facing soaring health, education and infrastructure needs. Which is why it has been argued here before that we'll only get serious about changing the system when the states demand it.

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The number of travellers through Sydney Airport rose by 2.4 per cent in August to 3.2 million, with strong growth in visitors from India, China and Malaysia.

Just under 1.05 million international passengers passed through Sydney Airport in August, up 5.6 per cent on the same period last year, and domestic passenger traffic rose one per cent to 2.1 million.

Sydney Airport chief executive Kerrie Mather said the start of direct flights between Sydney and Delhi contributed to the rise.

‘‘The Indian market has significant potential for growth and will be further stimulated by the advent of direct services,’’ she said.

Visitors from India were up nearly 13 per cent compared to a year ago.

Visitors from China were up more than 14 per cent, while traffic from Malaysia was up more than 20 per cent due

to the relaxing of bilateral air rights and a campaign by Tourism Australia and Destination NSW.

Gold is hovering near one-week highs today and was on track for its biggest weekly climb in five weeks after the US Federal Reserve postponed the tapering of its bullion-friendly stimulus measures.

But gains were likely to be capped during Asian hours as key buyer China was closed for the mid-autumn festival.

"The market will take some time to digest the 'no-taper' surprise," said Victor Thianpiriya, an analyst at ANZ, adding that economic data would take on more significance going forward.

"We expect the US dollar to trade on the weak side, and this should support gold in the near-term at an expected higher range of $US1,350-$US1,400."

Fed Chairman Ben Bernanke on Wednesday refused to commit to begin reducing the central bank's bond purchases this year, and instead went out of his way to stress the programme was "not on a preset course". Many had expected a $US10 billion cut to the $US85 billion monthly bond purchases following strong economic data.

Japanese Finance Minister Taro Aso said today he will meet Prime Minister Shinzo Abe and discuss lowering the corporate tax rate with Economics Minister Akira Amari.

The government is considering lowering corporate taxes as part of economic stimulus to offset the impact from a scheduled sales tax hike.

Aso reiterated his disapproval of corporate tax cuts on Friday, but Abe and Amari support the plan, which means the tax cuts are likely to happen. 

CIMB analysts have a warning for financial markets and investors - don't be complacent about the US Federal Reserve's decision yesterday to keep the $US85-billion-a-month running at its current size. They said the central bank's policy settings "appears to be on borrowed time".

"The fact that the Fed did nothing about changing expectations in the lead-up to last night’s FOMC meeting has left markets unclear about its intentions. It could be that the Fed has no conviction about its own optimistic growth forecasts and, if this is the case, then the market’s rally will be brief," the analysts say in a research note.

They noted that while global and domestic cyclicals outperformed the market yesterday after the Fed's decision, a lack of a pickup in US economic data would not give any support to such an outperformance.

"Furthermore, we think that if these sectors rally in the short term, then it will create even better opportunities to sell these names into global and domestic cyclicals."

So what should investors and businesses do in what currency strategists are saying is only a temporary spike in the Australian dollar?

ANZ currency strategist Andrew Salter says he and his team are advising businesses that have foreign liabilities and expenses to use these levels to place longer-term hedges, and for other investors to position short for the more medium-term.

"We still see fair value in the Australian dollar as below 90 US cents by 2014, so we're pretty confident. That's a view that's derived from our expectations for commodity prices in China.

"So we're pushing on the 'sell 95, sell 96' as being a trade of high conviction."

The Australian government has sold $800 million of January 21, 2018 Treasury bonds.

The Australian Office of Financial Management (AOFM), which conducts bond auctions on behalf of the government, said the bonds were sold for a weighted average yield of 3.1923 per cent.

The sale attracted bids totalling $3.320 billion, giving a coverage ratio of 4.15.

Prime Minister Tony Abbott says he won’t be changing the GST despite calls from within his own party for a fresh look at the tax.

Liberal West Australian Premier Colin Barnett reignited the GST debate yesterday when he called on the Abbott government to consider lifting the rate of the tax.

ACT Labor Chief Minister Katy Gallagher has weighed in too, saying there should be a national conversation about possible changes to the GST.

The coalition came under fire during the election campaign because its white paper on taxation - to be released in the first term of government - will include a look at the GST.

It argued no proper review of the nation’s revenue base could be undertaken without including the 10 per cent GST.

But Mr Abbott ruled out any change - a position his spokesman re-confirmed today.

‘‘There will be no change to the GST, full stop, end of story,’’ the spokesman said.

Land prices in Japan’s three largest cities rose for the first time in five years – albeit modestly – signalling a return of confidence among homebuyers and investors.

The average price of land in Tokyo, Osaka and Nagoya gained 0.1 per cent as of July 1, compared with a 1 per cent drop a year earlier, according to a report from the Ministry of Land, Infrastructure, Transport and Tourism.

The gain was the first since 2008 when it climbed 1.7 per cent. The decline in nationwide land prices, which have been falling for 22 years, narrowed to 1.9 per cent, the smallest in five years.

Low interest rates and a return of consumer confidence that rose to the highest level in six years after Prime Minister Shinzo Abe’s pledge to revive the economy have led to an increase in property transactions.

“We have started to see signs of recovery,” said Keiji Kimura, chairman of Mitsubishi Estate, Japan’s biggest developer. “In order to end the asset deflation and achieve sustainable growth, we must increase the competitiveness of our major cities and stimulate housing investments.”

The Australian dollar has returned to the levels it was at in mid-June. This morning, it was buying 94.5 US cents, after rising above 95 US cents following the Fed's decision to stay its hand on tapering back its massive stimulus program.

But does the rise in the Australian currency signal a return to parity with the US dollar - a level not seen since May?

"We don't think it's likely at this stage," says Commonwealth Bank currency strategist Peter Dragicevich.

Dragicevich says while it was likely CBA would review its forecasts of the dollar following the surprise move from the Fed, he did not envisage that any new figures would vary drastically from the bank's current year-end forecast of 92 US cents.

"The decision by the Fed yesterday, in our view just delays the inevitable. It doesn't change the trend so we don't expect the Aussie to drift too much higher from current levels.

"As the market starts to price in the prospect of tapering later in the year, once again the Aussie should come back under some downward pressure."

Dragicevich says there are a variety of factors that could lift the Australian dollar over the next few months include improving economic data coming out of China and a pick-up in global growth, such as from the US.

But he adds that another soft inflation reading (released late October), a rising unemployment rate - coupled with the dollar at current levels - could see the RBA ease the cash rate again, which in turn would weigh on the Australian currency.

Tokyo stocks have opened 0.24 per cent higher after two days of gains.

The Nikkei 225 index at the Tokyo Stock Exchange was up 35.46 points to 14,801.64 at the start.

‘‘With the Nikkei up over three per cent in just two days, a measure of profit-taking can be expected,’’ said Tachibana Securities market adviser Kenichi Hirano.

He said this could be more marked because of several factors including the upcoming three-day weekend in Japan, a number of key Asian markets being on holiday today, and German federal elections on Sunday.

It has climbed another mountain, this time topping $2 billion level as investors continue to price in perfection for Kiwi accounting software outfit Xero's global roll-out of its cloud-based product suite.

The share price has risen nearly four-fold over the past year, reaching a new high of $17.10 in early trading, holding at $17.05 a little later on.

This was enough to lift its sharemarket worth to $2.05 billion, and putting it on the cusp of moving into the rarefied ranks of the top 100 listed stocks, although the limited free-float and turnover means that it is not widely held by institutional investors.

The Wall Street Journal, part of Rupert Murdoch’s media empire, says it will split with the technology news website AllThingsD by the end of the year.

The news comes amid a major reorganisation in Murdoch’s holdings, following a split of his News Corp into two separate groups.

A statement from Dow Jones, the operating unit for The Wall Street Journal, said the agreement between the newspaper and website would be terminated.

‘‘Both parties have decided not to renew the agreement when the contract expires at the end of this year,’’ the statement said.

Wall Street Journal editor in chief Gerard Baker says the newspaper will beef up its technology coverage following the departure of the AllThingsD team.

The stock market has opened slightly lower. The benchmark S&P/ASX200 index has slipped 10 points, or 0.2 per cent, to 5285.5, while the broader All Ords is down 10.2 points, or 0.2 per cent, to 5278.4.

Losses are being led by the materials sector, which is down 0.9 per cent.

Boart Longyear stocks have been put into a trading halt. The company said it had requested the halt in response to speculation on the status of its recent US debt raising. It will make an announcement on this. Stay tuned.

Morningstar has reviewed its CSR forecasts and while it's more optimistic for the company's outlook it considers the shares slightly overvalued:

  • We review our CSR forecasts in the wake of improved housing market indicators and sentiment. Businesses exposed to residential and commercial construction have spent recent years rationalising capacity and cutting costs to accommodate lower activity.
  • Now that confidence is showing signs of improvement, these businesses will benefit from significant operating leverage. We believe the optimism is warranted and the long awaited recovery is sustainable, supported by a low interest rate environment, relatively low unemployment, strong auction clearance rates and tight rental markets.
  • We have increased our fair value estimate from AUD 1.80 to AUD 2.00. Our fiscal 2014 net profit after tax estimate has increased only marginally from AUD 60 million to AUD 62 million. However, we are now more optimistic on the pace and quantum of the recovery in the building products and glass business in the medium term.
  • Our fair value estimate corresponds to 16.3 times our 2014 earnings per share estimate. While this seems a full valuation, one needs to be cognisant that the glass division, currently a significant drag on earnings, is in transition and is expected to return to profitability in fiscal 2016. We continue to view the shares as slightly overvalued.

US stocks fell after the Standard & Poor’s 500 Index rallied to a record yesterday on the Federal Reserve’s decision to refrain from cutting stimulus as investors weighed the latest batch of economic reports.

The S&P 500 fell 0.2 per cent to 1,722.32.

“It’s been essentially a bleeding off of some of the party atmosphere from yesterday,” Kevin Caron, a market strategist at Stifel Nicolaus & Co, said. “At some point the market’s got to take a breather and I think today’s that day. There’s no real catalyst today in the data.”

The Australian market is set to open lower, the day after hitting new five-year highs due to the surprise decision by the US central bank to maintain its stimulus program. Wall Street, which had also rallied on the decision, fell back overnight.

What you need2know this morning:

  • SPI futures down 17 points to 5,291.
  • AUD fetching 94.45 US cents, 93.90 yen, 69.82 euro cents, 58.92 pence
  • On Wall St, Nasdaq +0.2%, Dow Jones -0.3%, S&P500 -0.2%
  • In Europe, Eurostoxx +0.9%, FTSE100 +1%, CAC +0.9%, DAX +0.7%
  • Spot gold rises 0.2% to $US1366.17 an ounce
  • Brent oil falls 1.8% to $US108.58 per barrel
  • Iron ore gains 0.1% to $US131.80 per tonne

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

Contributors: Max Mason, Jens Meyer

This blog is not intended as investment advice

BusinessDay with agencies

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  • It is difficult to suppress the Aussie dollar, as US has simply printed TOO MUCH USD! The further they delay tapering, the weaker USD should get. No need a rocket scientist to work this out.....

    Commenter
    modernhero
    Location
    QLD
    Date and time
    September 20, 2013, 4:48PM
  • RE: "national house price growth now looks to be running at three times wages"

    There has long been a trend in developed countries where people get their ambitions mixed up with their abilities. Australia is as good example of this as any. To try and bridge the gap between their imagined wealth (bubble priced property) and actual wealth (very modest income/money making ability) they changed the word "debt" to "leverage". But the thing is, you might be able to change the word "debt" to "leverage" in your little circle of fellow massively indebted bubble price property holders but you still either have to pay that debt back or default on it. There's a lot of tragedy out there.

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    September 20, 2013, 4:42PM
  • I will leave you for the week with a quote that sums up the state of mind of No Vision and the AGW denialists:

    "What a waste it is to lose one's mind. Or not to have a mind is being very wasteful. How true that is."

    Dan Quayle, former U.S. Vice President

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 20, 2013, 4:40PM
  • Heavy selling in Gold stocks in last 10 minutes. KCN / SBM / MML all went down in last 10 minutes. Whats the go?

    Commenter
    Essen
    Location
    Date and time
    September 20, 2013, 4:40PM
  • Christopher Joye is backpedalling at a furious pace, Any faster and he'll set a land speed record.

    Get your walking shoes ready Rory.

    ROFLMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 20, 2013, 4:36PM
  • LOL see how easy it is to get them frothing. Poor dears.. afraid of a few shorts. Suck it up princesses!

    ROFLMAO!

    ARI, NAB, DMP in the money. Grates doesn't it.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 20, 2013, 4:25PM
  • RE: "Only fools ignore bubble trouble". Well.. lord knows we have no shortage of uneducated scarcely literate know it all baby boomer fools in Australia who were told at the property seminars to call "debt" "leverage" and that property "only goes up" and "doubles every 5-7 years".

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    September 20, 2013, 4:22PM
  • does allan have a trading blog?
    thanks
    he he

    Commenter
    Hugo Hubris
    Location
    Date and time
    September 20, 2013, 4:10PM
    • You're reading it.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 4:30PM
    • You should try a subscription model Allan. That'd weed out the wankers. Good idea EDs?

      Commenter
      Gordon Gekko
      Location
      Greg Coffey World
      Date and time
      September 20, 2013, 4:40PM
    • Allen I think we were hoping for a dedicated blog so can dont get distracted by other people musings and dribble.

      Commenter
      Victor
      Location
      Moes Bar - its Friday
      Date and time
      September 20, 2013, 4:40PM
  • "Residential property is the biggest source of household wealth"....does this mean power stations are the biggest supplier of power? or perhaps just that telcos are the major players in facilitating global communications?

    Commenter
    WWWish
    Location
    Melbourne
    Date and time
    September 20, 2013, 4:09PM
  • who's winning?
    shorters must be making a truck load this week?
    he he

    Commenter
    alfa76
    Location
    Date and time
    September 20, 2013, 3:51PM
    • You bet I am. They're called "deferred profits".

      Commenter
      Gordon Gekko
      Location
      Greg Coffey World
      Date and time
      September 20, 2013, 4:42PM
  • no gifts today..no rent money?
    oh no
    he he

    Commenter
    allan's old man
    Location
    ...
    Date and time
    September 20, 2013, 3:48PM
  • I will shock you all on October 1, 50 basis point cut because Tony told me

    Commenter
    Glenn Stevens
    Location
    RBA
    Date and time
    September 20, 2013, 3:33PM
    • That 50 point cut is for the rate the banks pay me & my fellow SMSFers for the money we have with them on deposit but what will the cut to the lending rate be,

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 3:48PM
  • I agree with Jimmy Chanos on shorting FMG. Do I have a seconder?

    Commenter
    Hugo Hubris
    Location
    Date and time
    September 20, 2013, 3:05PM
    • Know a couple went short on FMG this week. I am still wondering if 5300 is the limit... 5400 then down? Hmmmm.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 20, 2013, 4:02PM
  • It is going to be a long 3 years for you (and us) Mitch. Probably be 6 and possibly even 9, heaven help us! The 5 stages of denial are - Denial, Anger, Bargaining, Depression and Acceptance.
    Can you give us an indication of when you will be at stage 5?

    Commenter
    Electoral Commissioner
    Location
    Date and time
    September 20, 2013, 3:00PM
    • I skipped all of those because I was under no illusion as to the stupidity of the Australian electorate. They selected a babysitter to look after their most precious possession with no references. If their little darling gets monstered then be it on their heads. I am presently in Noisy Rebellion and it will only get worse from here. My only consolation is that this is already looking like a one-term wonder.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 3:34PM
  • hey can you guys just keep the comments to commonwealth bank shares and taking on huge debt to buy investment property to rent out for a few hundred bucks a week. thats the top of my financial knowledge. there the only investments i thought existed on planet earth to invest in. stop posting about things that are over my head or i will keep mindlessly trolling this blog to try and ruin it for my betters he he

    Commenter
    alfa76
    Location
    primary school education
    Date and time
    September 20, 2013, 2:53PM
    • Shhh... he's Hugo now, don't tell anyone.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 3:09PM
    • Welcome back alfa!!! Half the people older than me made money out of housing and had zero clue or idea what they were doing. My generation is not so fortunate. Work hard, save, deposit on home. Yeah right. Housing is set for a collapse and I wish not to be part of it.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 20, 2013, 3:18PM
    • very funny GA he he

      Commenter
      Can't twick me
      Location
      Date and time
      September 20, 2013, 3:28PM
    • No getting anything past Allan. Nice try.

      Commenter
      Andy
      Location
      Melboure
      Date and time
      September 20, 2013, 4:05PM
    • too good for me allan
      he he

      Commenter
      hugo
      Location
      Date and time
      September 20, 2013, 4:17PM
  • If I closed my ORG short today would I have enough for the FMG magazine or would I have to get a personal loan from CBA

    Commenter
    Hugo Hubris
    Location
    Date and time
    September 20, 2013, 2:47PM
    • Weak. Man up and posts some trades.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 3:07PM
    • lighten up al pal, don't be so serious man. It is actually a very clever play on your dilemma!

      Commenter
      Dewf Hart
      Location
      Date and time
      September 20, 2013, 3:51PM
    • Get him Allan

      Commenter
      Andy
      Location
      Melbounre
      Date and time
      September 20, 2013, 3:58PM
    • i agree with allan
      he he

      Commenter
      fan of allan
      Location
      ....
      Date and time
      September 20, 2013, 4:19PM
  • "If you believe as we do strongly that the Chinese credit driven investment boom has to ultimately come to no good, then there is probably no better place to be short than iron ore,"

    www.theage.com.au/business/mining-and-resources/fortescue-fighting-shorters-and-silencing-doubters-20130920-2u4ce.html#ixzz2fP4xrtRY

    Jim Chanos, legendary shorter of Enron vs Charlie Aitken. LOL No contest.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 20, 2013, 2:24PM
    • Great Link. Thanx. Got any more?

      Commenter
      Andy
      Location
      Melbounre
      Date and time
      September 20, 2013, 2:51PM
    • There is some interesting stuff in here food for thought for investors to mull. Cheers
      http://contrarianedge.com/

      Commenter
      Opto
      Location
      Hi
      Date and time
      September 20, 2013, 3:05PM
    • what great wisdom...go allan go..

      Commenter
      fan of allan
      Location
      allan's mums joint..
      Date and time
      September 20, 2013, 3:39PM
  • The timourous wee beasties are back.

    Commenter
    When will i learn about miners !
    Location
    Vic.
    Date and time
    September 20, 2013, 2:15PM
  • What a magnificent sporting phenomenon is the Kennett Curse. I heard him trying to duck it in March, good for a laugh. Just goes to show that if you want to insult an opponent choose your words carefully.

    Commenter
    Bearly Gruntled
    Location
    Land of hot air
    Date and time
    September 20, 2013, 2:11PM
  • Bought some Wotif.com Holdings Limited (WTF) today for $4.65.

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    September 20, 2013, 2:09PM
    • why?

      Commenter
      go cats 23
      Location
      Date and time
      September 20, 2013, 2:45PM
    • It looks like a good price to me. It's an internet based business growth stock (not many internet based growth stocks on the ASX that look attractively priced to me at the moment). I think the AUD will fall significantly against the USD when US tapering starts and the RBA is stuck with "Emergency Level" interest rates when major economies are raising interest rates. I think the lower AUD and weaker financial position of many Australians because of the deflating housing bubble and increasing unemployment will reduce overseas holidays and increase domestic holidays which will benefit the Asia Pacific region travel/accommodation related websites WTF owns.

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      September 20, 2013, 3:30PM
  • VAH is down 4%.

    Commenter
    Punter
    Location
    Date and time
    September 20, 2013, 1:42PM
    • VAH goes up and down between around 0.40 and 0.45 fairly reliably and cyclically - it's been doing that for the last few years.

      I usually buy a truckload when they hit 0.40, then sell them a few weeks later when they hit 0.45, then buy them back again a few weeks after that when they drop again.

      Commenter
      X
      Location
      Melbourne
      Date and time
      September 20, 2013, 2:18PM
    • Except when it goes down to 23c.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 3:01PM
  • I would have no objection to paying an extra 5% GST if it got the joint moving again, lets face it, you really have the choice to pay it or not. I am still going to buy my pizza and Shiraz to watch the footy tonight. I mean $50 or $52.50, just means I lose an extra $2.50 when the missus raids my coin jar!

    Hopefully we will get another classic, can the Hawks end the Kennett curse?

    Commenter
    Looking for Value
    Location
    Date and time
    September 20, 2013, 1:09PM
    • Kevin 013 had the rise in GST, applied to Vegemite, costing 50 cents. At an increase of 2.5% Vegemite would cost $20 at his rate. People need to pay more attention to the detail. The only way faint way that TA would allow an increase in GST would be if ALL the states were screaming loudly and in public. It won't happen, he has just spent 3 years howling about a carbon tax, with the support of thousands of media people shouting on his behalf. Why anger them when he will need them in 3 years.

      Commenter
      Bearly Gruntled
      Location
      Land of hot air
      Date and time
      September 20, 2013, 2:03PM
    • no they can't

      Commenter
      go cats 23
      Location
      Date and time
      September 20, 2013, 2:43PM
    • Were you convinced foreign miners shouldn't pay the mining tax too?

      GST increase would negate advantage of cash economy but I'd absolutely reject an increase in GST unless it came with a reduction on payee tax.

      Especially as Abbott will reduce Co. tax. as it lowers the imputation credit which means more tax for Aussie citizens.

      Commenter
      nolongerconfsued
      Location
      Date and time
      September 20, 2013, 4:09PM
  • So glad that Tony Abbott has finally taken charge and making appropriate decisions regarding the waste of money previously thrown at Climate Change nonsense.

    Commenter
    No
    Location
    Climatechange
    Date and time
    September 20, 2013, 12:55PM
    • Absolutely, the one thing the ALP are good at is wasting money on bureaucrats and spending millions on studies that never get used and spend the rest of their life gathering dust in a cupboard some where.

      Commenter
      Xenaphon
      Location
      Date and time
      September 20, 2013, 1:15PM
    • So he can waste it somewhere else ?

      Commenter
      The Oracle
      Location
      2233
      Date and time
      September 20, 2013, 1:20PM
    • Dead right, after all he can blame this summers record heatwaves, record floods and record bushfires on that bad, bad Labor gov't. All too easy, really.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 1:32PM
    • Tell us again how 97% of climate scientists are part of a global conspiracy Jo Nova.

      Tony and the Tories are going to be great fun.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 1:52PM
    • Yes good to see.
      I mean every three and a half millenia that wasteful climate commission was given enough money to run Tonys PPL scheme for a year.

      There are so much better things we could be doing with $1.5 mil per year.

      Commenter
      Johnny
      Location
      Date and time
      September 20, 2013, 1:54PM
    • Schooled by Allan again. Keep em honest!

      Commenter
      Andy
      Location
      Melbourne
      Date and time
      September 20, 2013, 2:04PM
    • Australia is responsible for something like 1.5% of global carbon emissions. We could spend the whole budget on reducing carbon emissions but it's not gonna change anything.

      Commenter
      Andrew137
      Location
      Date and time
      September 20, 2013, 2:07PM
    • Just the same as 100% of computer geeks said we would go down the gurgler in 2000 due to Y2k. Weight of numbers can be a poor metric to base your argument on. But keep making crap up by all means.

      Commenter
      Scotty
      Location
      Kew
      Date and time
      September 20, 2013, 2:09PM
    • And Australia has even less of the % of murders. Legalise murder!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 2:11PM
    • The carbon tax was not going to reduce any emissions from Australia, and was a huge waste of time and money, which seems to be the only thing Labor are good at doing.

      Please remember that back in 2008 there were many from the Labor party claiming that Australia would be destroyed by drought, then the flooding started.

      Scientists cant even agree on how the world was created, let alone so called climate change which has been going on for billions of years.

      Commenter
      No Vision
      Location
      Sydney
      Date and time
      September 20, 2013, 2:27PM
    • Whether it's reducing HFCs or carbon emissions, Australia is a member of the world community and has to play its part, no matter how small our contribution. The absence of any plan to tackle climate change could see our exports being banned by our trading partners if they have carbon reduction plans in place and we don't.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 2:39PM
    • @Scotty

      The Millennium bug was a non issue because huge amounts of time and money were spent ahead of time fixing it.

      Hopefully we can act so climate change is as minor an issue. But its not looking very likely.

      @ No Vision.
      What do you mean that scientists don't know how the world was created?

      The details may not be 100% settled but the basis process is quite well understood and has been witnessed in other star systems at varying stages.

      You have no idea what you are talking about do you.

      Commenter
      Jimmy
      Location
      Date and time
      September 20, 2013, 2:56PM
    • Yes that's right "No Vision" the scientists are all a part of the global conspiracy. Just like when they warned about CFC's and the hole in the ozone layer. No wait....

      Seriously you, Gina and the whole loony right AGW deniers couldn't be more ridiculous if you tried.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 3:06PM
    • @Scotty there is no comparison between Y2K & climate change. The effect of the Y2K bug was easy to model just by shifting computer clocks forward and testing software to see if it could produce the right output beyond 31/12/1999 11:59:59. One organisation I worked for had to reformat all of its databases and reconfigure all of its software to accept a beyond Y2K date. That took 18 months of rewriting and testing and cost several $M. If it had not been done millions of people would have been affected financially.
      There is no such perfect method available for testing climate change. The testing will come as it happens and that's way too late.
      Are you deliberately misunderstanding the depth of the problem.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 3:12PM
    • "100% of computer geeks said we would go down the gurgler in 2000 due to Y2k"

      Any peered reviewed science to support that? But now I get it, you're carrying a grudge about a whole different scenario, involving a whole different set of people.

      "Thems all expurts n they was wrong!"

      How shallow can you get?

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 3:20PM
    • Yep, while populating (the most destructive environmental issue by far) at 1000 people a day. What a joke this and every other government we've had for the past 30 years are. If we continue populating, you may as well do nothing. It really is that scientifically simple.

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 3:22PM
    • I still say anything spent on it is a waste. If anything i would like to regulate Allan, all that hot air of his is surely making the most difference?

      Commenter
      No
      Location
      Climatechange
      Date and time
      September 20, 2013, 4:04PM
    • First you say the climate is always changing and no you say there's no climate change. Deniers don't know if they're Arthur or Martha.

      Tell us again about the global scientific conspiracy. That one's a cracker.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 4:27PM
  • Karoon KAr.. Is trading at support.. Could be a buy? The price came down lately despite their Proteus 2 feedback being positive.. Anyone has a view on this stock?

    Commenter
    The Romaniac
    Location
    Date and time
    September 20, 2013, 12:53PM
  • @green sheep "not sure you're really looking in the right place. this blog is for baiters and biters, not for serious discussion :)"

    No this blog is not for old lifelong losers with a primary or junior high school level of education thinking the only investments in the global economy are Australian property and Australian bank shares. Although these uneducated bad character people try and troll and ruin this blog daily desperately trying to wreck any intelligent discussion above their low IQ level, there's still a few people here who finished high school and have a reasonable understanding about global financial markets and enjoy learning from other high school graduates who post here.

    Commenter
    Meat
    Location
    on the Bones
    Date and time
    September 20, 2013, 12:45PM
    • thats interresting you been around and i dont remember any blogs from you who do you rate the best and the wurst??? and do you trust them???

      Commenter
      The Terminator
      Location
      planits orbit
      Date and time
      September 20, 2013, 1:17PM
    • Following DTE very closely. I think that investors have generally cheered their focus on main assets. Currently in the middle of a 1 for 9 capital raising. Have some things that need to fall in to place re Scottish parliament. Energy also for the UK is of more immediate importance and they are looking at diverse options away from Nuclear and Coal and Gas is a solution for them but the environment will need special care but things are gathering pace. I personally feel things will move carefully in this direction unlike the rapid US expansion that has in some cases been problematic -but we are now considering the UK where things move more cautiously. Cheers

      Commenter
      Optimist
      Location
      Hi
      Date and time
      September 20, 2013, 1:26PM
    • I agree Meat! Like Allan.

      Commenter
      Andy
      Location
      Melbourne
      Date and time
      September 20, 2013, 2:29PM
  • Hi Wally....most market analysts/commentators seem to prefer NAB when talking about the "Big Four"...

    Commenter
    mirage
    Location
    Date and time
    September 20, 2013, 12:36PM
  • RE: "So what should investors and businesses do in what currency strategists are saying is only a temporary spike in the Australian dollar?"

    I agree sell AUD around US$0.95/96 and buy US stocks in the short term. When I was buying USDs above parity throughout 2012 and up to May 2013 I just found it remarkable Australian financial services professionals weren't advising their clients to do the same en masse. Then.. as often happens with forecasters and advisers.. they identified and recommended the trade late telling their clients to "get US equity exposure" when the AUD had fallen to around US$0.90 lol Utterly pathetic. Sad for their clients.

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    September 20, 2013, 12:29PM
    • Same. Increased my USD exposure as soon as that spike came. The RBA are wishing the currency down. It'll get back to fair value sooner rather than later. 85c is coming next year.

      Commenter
      heybert
      Location
      Sesame Street
      Date and time
      September 20, 2013, 1:48PM
    • Only thing that kept it high for so long was the net foreign inflow of cash to build the giant LNG white elephants.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 2:00PM
  • Tony has two choices, cut gov spending or raise taxes...this is a decision he has to make and a lot of people will jump up and down either way. I hope he cuts gov spending, not to the bone but we dont need our appendix it doesnt do anything...maybe our tonsils can go too...and it is definately time for a hair cut.

    Commenter
    WWWish
    Location
    Melbourne
    Date and time
    September 20, 2013, 12:24PM
  • It will be interesting to see how the global market plays out over the next month or 2. It's quite amazing to see the hubris in the market especially considering the inability of the FOMC to taper QE at all, which doesn't provide the greatest level of confidence in this market at all.

    Most of my holdings are shorts which currently are out of the money, but I am willing to hold and bet that these current levels are unsustainable.

    Thoughts?

    Commenter
    Lustre
    Location
    London
    Date and time
    September 20, 2013, 12:17PM
    • Agree. Mine are nearly all shorts, with heavy exposure to the banks. Added more shorts this morning. I'm pretty sure the banks are fully priced, but time will tell. All I pay is small stock borrowing fees, and I can wait. But I wouldn't want to see an unexpected bull market driving it up higher. With US debt-ceiling looming and the potential for that to roil market, I don't think that's likely.

      Commenter
      Gordon Gekko
      Location
      Greg Coffey World
      Date and time
      September 20, 2013, 12:52PM
  • "The decline in nationwide land prices, which have been falling for 22 years, narrowed to 1.9 per cent, the smallest in five years."

    But hang on... they're not making any more land in Japan so land prices should always go up? Oh except for airports, they pop up out of the ocean.

    Japan Urban Land Price Index - Six Large Cities, Residential

    1991, 223
    1992, 183
    1993, 149
    1994, 136
    1995, 125
    1996, 118
    1997, 113
    1998, 111
    1999, 106
    2000, 100
    2001, 94
    2002, 89
    2003, 84
    2004, 79
    2005, 77
    2006, 78
    2007, 84
    2008, 88
    2009, 81
    2010, 77
    2011, 77
    2012, 76

    Prices are now where they were in 1982.

    http://www.stat.go.jp/data/nenkan/zuhyou/y1712000.xls

    Bust follow booms, Who knew?

    ROFLMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 20, 2013, 12:11PM
    • Exactly. But property spruikers and littlelandlords don't believe in property bubbles. They keep peddling their "Australia is different" line they were told in the property seminars. How's that going to end for them when interest rates rise and there isn't enough Australians in a strong enough financial position or dumb enough to purchase nothing houses in nothing suburbs for $500k financed with DEBT? LOL

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      September 20, 2013, 12:34PM
    • So right, can't believe people try and argue with the stats you post!

      Commenter
      Andy
      Location
      Melbourne
      Date and time
      September 20, 2013, 12:49PM
    • And this is with huge swathes of land being permanently taken out of circulation by natural and man-made disasters. People evacuated from affected countryside would be flooding into cities and pushing up prices but there seems little evidence that that is happening, which makes the fall in prices seem even worse. What would the fall in city land prices have been without the disasters and the consequential increase in demand.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 12:58PM
    • ARI in the money. WEll done.

      Commenter
      got brain
      Location
      Date and time
      September 20, 2013, 1:06PM
    • im with allan on this one.

      Commenter
      foa
      Location
      allan's mums joint
      Date and time
      September 20, 2013, 1:38PM
    • Get some context.
      Japan has a DECLINING population.

      Commenter
      Irish Phil
      Location
      Date and time
      September 20, 2013, 1:47PM
    • Allan. Please keep these posts out of the media for 6 more weeks!!! I am selling out and need the gullible to take the last of my property at inflated prices!!! Then we can go to town on these misinformed super fund holders... shorting all the way!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 20, 2013, 1:57PM
    • I see, so the boom was caused by their declining population. LOL strange world the bulls live in.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 2:07PM
    • Yet Sydney continues to rise. At current interest rates, investors can buy properties without costing them a cent to pay off.

      Free property anyone?

      Commenter
      No Vision
      Location
      Sydney
      Date and time
      September 20, 2013, 3:37PM
    • Sydney hasn't beaten inflation for a decade, its bubble was formed in the previous decade.

      LOL yeah free money, property seminar victim no.1 No Vision.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 4:01PM
    • 5% Interest and 4% Rent with Tax Deductions = free property.

      Do you want a calculator?

      Commenter
      No Vision
      Location
      Sydney
      Date and time
      September 20, 2013, 4:44PM
  • Anyone got any good Australian or US stock picks they reckon are priced attractively at the moment? All the waffle on here day after day is malnourishing me.

    Commenter
    Meat
    Location
    on the Bones
    Date and time
    September 20, 2013, 11:49AM
    • not sure you're really looking in the right place. this blog is for baiters and biters, not for serious discussion :)

      Commenter
      green sheep
      Location
      slim pickings
      Date and time
      September 20, 2013, 11:57AM
    • Someone on here was raving about the magnificent dividend of $US0.81 per quarter that they were getting for their Macdonalds stock trading at US$100 from a growth point of view. I could think of better buys but if your taste runs to overpriced American stock then you could give that a go.
      I posted earlier about Australian investment companies that have had good capital gains and pay f/f dividends. Some are going ex-dividend next month. It's a question of whether you go for the dividend and buy now at a high price or buy them ex-div at a lower price.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 12:18PM
    • @mitch "I could think of better buys" but you don't want to post them because your musings "shift markets"? lol

      Commenter
      Meat
      Location
      on the Bones
      Date and time
      September 20, 2013, 12:37PM
    • @Meat, Loose lips sink ships. I have seen plenty of times when stocks that were being discussed on here took big dives during the day as some took the talk and comments as a cue to sell. One sale begets another and another as selling is easier than buying.
      My elderly father-in-law, a very active & large-scale trader (he used to be a broker) until he lost his eyesight, and who advises me on trades, said to me "keep very quiet on stocks you want to buy and talk long and loud about stocks you want to sell."
      Some posters here don't seem at all ashamed in using this forum to do what looks like "pump & dump".

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 1:21PM
    • Lol even serious posts can't get serious answers in here.

      I've been watching LEI, bought and sold a couple of times but looking to hit it very hard at the sign of a reversal. Pretty volatile and pretty predictable, good money on the table if you can pick it right.

      Also been watching BSL very carefully. If that gets anywhere near $4.50 I'll look to hit it very hard as well.

      Commenter
      Andrew137
      Location
      Date and time
      September 20, 2013, 1:48PM
    • @mitch of ACT no the $4.67 billion average turnover on Australian equity markets doesn't allocate money according to what mitch of ACT posts on an Australian news/business blog. Does 2pm Tuesday or 11am Wednesday next week suit you? We need to start treating your chronic "Walter Mitty" condition ASAP.

      Commenter
      Psychiatrist
      Location
      Clinic
      Date and time
      September 20, 2013, 2:19PM
    • No, can you make it some time after trading has closed. If the market realises that Mitch is not watching each and every trade, anything can happen.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 3:53PM
  • Nice to have my intuition that younger people have been returning to more sensible, traditional pre boomer attitudes with their money, so the retailers should stop bleating for another rate cut. During the middle class giveaways of the greed Howard-Costello years there was over investment in retail and now is the time for the big cull.

    Cheerio.

    Commenter
    Catch 22
    Location
    Date and time
    September 20, 2013, 11:44AM
  • Allan in May..June..July..Aug "The NAB is a dud buy...short short short"
    he he

    Commenter
    Charlie Aitken
    Location
    ....
    Date and time
    September 20, 2013, 11:26AM
    • Can anyone explain why NAB is powering ahead?

      Commenter
      Wally
      Location
      Flynn
      Date and time
      September 20, 2013, 11:33AM
    • Two important sayings that traders should remember:

      - when market is zooming upwards, don't stand in front of the freight train

      - when market is dropping like a stone, don't try to catch a falling knife

      Commenter
      Bud Fox
      Location
      Date and time
      September 20, 2013, 11:52AM
    • You call trading at its Feb 2006 price powering ahead?

      Strange world the bulls live in.

      How's your ERA position going Charlie?

      ROFLMAO!

      How about your FMG at $10?

      ROFLMAO!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 12:03PM
    • Oh and hi Alfa, good to see you again, I love playing whackamole.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 12:22PM
    • Wally I agree Allen
      I posted last week how NAB were at same level as 2005
      Grab a chart, that's a long time to wait for evens

      Commenter
      stuarth44
      Location
      Date and time
      September 20, 2013, 1:14PM
    • Keep on whaking Allan, great work.

      Commenter
      Andy
      Location
      Melbounre
      Date and time
      September 20, 2013, 1:37PM
    • he he .. keep biting amateur.

      Commenter
      Charlie Aitken
      Location
      Date and time
      September 20, 2013, 3:29PM
    • Yep Charlie I knew you had nothing. Long FMG $10. ROFLMAO!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 4:02PM
  • Mr Barnett and the His treasurer Chair sniffer in Western australias state government have received an extra 8 billion each year in revenue from the mining boom but they have increased their sending by 10 billion each year thus a budget deficit and no more aaa credit rating.So a diversion today from the premier and his Sniffer by blaming so called lack of revenue from the gst.Nonsense! Less Sniffing and spending will get wa back in the game.Look at victorias aaa!

    Commenter
    Mouk-Pm and Am
    Location
    richmond
    Date and time
    September 20, 2013, 11:24AM
    • In this rate environment AAA or AA = SFA difference any how.

      Commenter
      yada
      Location
      Date and time
      September 20, 2013, 11:39AM
    • Aren't the same people screaming for a rise in the GST, a tax on the common man, the same people who vehemently opposed the MRRT, a tax on the biggest mining companies. If they want more revenue the solution is staring them in the face, lift mining royalties or don't abolish the MRRT or both.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 11:46AM
    • GST Sharing Relativities:
      NSW: 0.96
      VIC: 0.90
      QLD: 0.93
      WA: 0.72
      SA: 1.27
      Tas: 1.6
      ACT: 1.12
      NT: 5.36

      Have a read...
      http://www.gstdistributionreview.gov.au/content/submissions/downloads/issues_paper/Treasury.pdf

      WA is has been growing the fastest in Perth and Region by a long way in terms of population. Need to build infrastructure.

      Commenter
      WhoAreThesePeople
      Location
      Date and time
      September 20, 2013, 1:13PM
  • Hanging out for the next rate cut and another investment property to add to the portfolio.

    Commenter
    Houses
    Location
    Please
    Date and time
    September 20, 2013, 11:22AM
    • hanging to sell my investment property to an over leveraged investor ;)

      Commenter
      housesformouses
      Location
      Date and time
      September 20, 2013, 11:56AM
    • Interest rate cuts are driving up house prices. People can borrow more for less so they pay more for a house. If you want a cheap investment property there will be plenty here in Canberra by Christmas and beyond as the Tory Rabbitt sacks public servants and landlords dump vacant properties or owners without a job sell up. You might have to hold it without a tenant for a year or two before the public service starts to creep back to its previous size.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 12:03PM
    • Selling to keen over committed investor. I am out of Aussie investments soon!! GOING TO BE A BLAST!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 20, 2013, 2:47PM
  • Re the Dollar
    I can see it creeping towards parity, with the Greenback, which will then enable me to buy a plasma cutter at sensible rates.
    But if Angele Dorethea Merkelhold as Chancellor, expect the Euro to bolt--up
    My fave woman
    Hope one day she gets to look at Abbot one day face to face with the disdain he richly deserves
    My place in market to sell wbc today 152, so I'm close:)

    Commenter
    stuarth44
    Location
    Date and time
    September 20, 2013, 11:20AM
  • I usually don't get into the real estate debate here in Sydney because its like debating the - & + of Catholicism to the Irish in Ireland (no disrespect to the Irish). However with the madness in Sydney R/E prices these days, with the help of the media and certain spruikers, I have always knew that its getting more expensive to invest in R/E today than 20 years ago, even with high interest rate....the maths don't lie, here is an just one example from someone who did the maths ( these figures are from the US but reflect AU as well): https://www.youtube.com/watch?v=bwCESIQ2HJY&feature=c4-overview&list=UUar63hrH-Uti1eOehga_cEg

    Commenter
    tommyHugh
    Location
    Sydney
    Date and time
    September 20, 2013, 11:17AM
    • I still think it is by far the best investment option long term.

      Commenter
      Proprty
      Location
      Option
      Date and time
      September 20, 2013, 11:56AM
  • Tony and the Tories are going to be the best fun of any Australian government in living memory. While Tony and the Tories have wisely clammed up when it comes to the media we're going to have a field day exposing their hatred of gays, women and science. What fun! ROFLMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 20, 2013, 11:17AM
    • With all due respect Allan, but it seems to me like the hate is all on your side.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      September 20, 2013, 11:38AM
    • Totally agree, serves them right.

      Commenter
      Andy
      Location
      Melbourne
      Date and time
      September 20, 2013, 11:40AM
    • That is nothing compared to the weeks before June 26th. I couldn't stop laughing for weeks when we didn't know from one day to the next whether the PM would be Rudd or Gillard. I miss those times.

      As long as we're paying them a salary, might as well get some entertainment value seeing as they did nothing beneficial for this country.

      Commenter
      Bud Fox
      Location
      Date and time
      September 20, 2013, 11:45AM
    • spot on allan.

      Commenter
      fan of allan
      Location
      Date and time
      September 20, 2013, 11:57AM
    • LOL Dr No tell us again about the global scientific conspiracy.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 11:59AM
    • go away Dr No.
      I agree with allan btw.
      he he

      Commenter
      GA
      Location
      ....
      Date and time
      September 20, 2013, 1:51PM
  • I hope gold stocks will still perform quite well in mid-term, at least for another few months.
    Any thoughts on SLR anyone?

    Commenter
    average guy
    Location
    Date and time
    September 20, 2013, 11:10AM
  • Yay! TPG up 3, IIN down7. Do I get a second medal? How many medals can I have GA?

    Commenter
    Gordon Gekko
    Location
    Greg Coffey World
    Date and time
    September 20, 2013, 11:01AM
  • I got a great tip yesterday...buy all the shares that has a code starting with W..... that makes sense (or cents?)...

    Commenter
    WWWish
    Location
    Melbourne
    Date and time
    September 20, 2013, 10:48AM
    • Does the tipper live in the ACT? Does the tipper always have a lot to say about other peoples' trades but never posts his owns (because he says he would "shift markets" lol). Did the tipper make a comment about the dividend paid by MCD: NYSE yesterday even though he thought the dividend was an annual dividend and didn't even know it was a quarterly dividend (i.e. comment about something he knew nothing about like he does daily on here)?

      Commenter
      Clown
      Location
      Whipper
      Date and time
      September 20, 2013, 11:01AM
    • Not quite, I was a little more specific. I said investment companies with a W in their ASX code, eg, DJW, WAM, WAX, WAA, WIC. I for one have made some nice profits and received f/f dividends. Counting capital gains (since 3/6/13), dividends & franking credits the return is 13.4%pa in 4 months.
      Of course I have the guts to make postings here under my own ID each time, every time. Others who make snide comments at my expense often seem to post under unique IDs.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 11:14AM
    • that's a great result Mitch of ACT.

      However, to put it into perspective VAS (Vanguard Exchange traded index fund following which tracks the S&P ASX300) has achieved a 13.6% gain from 1.7.13 ($59.95) to today ($68.14 as of about 12.30pm.)

      This does beat your return of 13.4%, and its only the index. If you factor in the fact that there is only one brokerage hit when going with an EFT (assuming you would have bought them all at the same time) tracking the index would have beaten your selection of W stocks as the transaction costs are significantly lower.

      Obviously this is just a snapshot in time and both baskets of shares to could diverge from this point.

      Commenter
      misterhorsey
      Location
      melbourne
      Date and time
      September 20, 2013, 12:32PM
    • @misterhorsey, diversification is the name of the game I play. To be stuck in one stock is not desirable for my way of trading. To trade over several stocks, my "Ws", gives me a lot more options as to whether to hold, sell or buy and to take advantage of individual market movements. Next month some of my "Ws" go ex-div and depending on immediate pre-ex-div price I have a few decisions to make on several stocks instead of just one. What I may lose one way I could get back in another. I may exit the "Ws" and buy into the next investment companies on my list.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 20, 2013, 2:12PM
  • WA to sell assets to get AAA rating back after the biggest mining boom in history. What then? You seriously couldn't make this sht up. Australia in depression within ten years. We'll done Australian voters. YOU have squandered all of Australia's wealth.

    Commenter
    JohnBB
    Location
    Date and time
    September 20, 2013, 10:18AM
    • depression is to strong a word.
      Although A recession is baked in imo
      Good thing too.
      We will have to refocus our economy

      Commenter
      yada
      Location
      Date and time
      September 20, 2013, 11:11AM
    • Wealth redistribution wins. NT/SA/TAS broke WA.
      Although it seems from the media and what not that these profligate states are starting to reform (apparently). The "depression" you talk about will be in housing, and any other debt-induced bubbles, especially if the Liberal party tighten fiscally. Albo might be right that Abbot could very well get only one term due to not reading the economic climate correctly. Suffice to say the next few years are going to be fun fun fun for all!

      I'm expecting some crisis to unfold towards the end of this year (international markets), early next year... dunno how or when, but certain patterns in charts (e.g. USD-Index (DXY)), top heavy stawks, and other things make me feel bearish about lots of things.... But what the hell do I know.... my crystal ball is broken...

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      September 20, 2013, 11:29AM
    • I for one am looking forward to a recession. It'll kick most of Australia's complacent population in the butt and wipe out the smug notion that "we're different" and are entitled to our wasteful lifestyle whilst not actually producing anything meaningful.

      Our politicians' only solution to growing debt is to just sell everything. No prospect of increasing taxes or reducing projects? Just sell it all! It's a recipe for disaster!

      Commenter
      panda
      Location
      perth
      Date and time
      September 20, 2013, 11:36AM
    • I find the way that Tasmanian Greens were allowed to destroy their industries a disgrace. With the massive drop in revenue they then held out a big bucket for other states to fill. Let them return to a subsistence existence if they wish, but don't reward them with cash. All the Greens have done is to allow the Libs to win and do more damage than if a sensible balanced approach was taken. WA meanwhile has a huge area and a small population. Comparing it to Victoria, which has a tiny land size compared to WA , is a little poor.

      Commenter
      Bearly Gruntled
      Location
      Land of hot air
      Date and time
      September 20, 2013, 11:46AM
    • @yada. Recessions are a normal cycle event. Depressions are an extraordinary event. Selling 85% of our assets, having the highest personal debt in the world, populating with exactly the same demographic under the guise of providing for an aging population are all extraordinary events that will leave our loved ones scratching in the dirt for food. Mark my words. It's coming. @panda. We will all be dragged along with them. Nothing will be safe including our homes, super, and any other assets. Gone. @Bearly Gruntled The Greens have helped created an environment (no pun) where we will not be able to afford to save anything. Royal National Park (and everything else WILL be sold to foreigners to develop. There is absolutely ZERO doubt. If people don't believe this, they haven't been paying attention to world events and what desperate politicians will do.

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 12:21PM
    • Cheers John,
      The private debt levels are gunna bite first no doubt. That the result of the expected recession which is going to be quite drawn out.
      Your other concerns wont really affect me as I'll be dead.
      Try as I might I can't see food as an issue

      Commenter
      yada
      Location
      Date and time
      September 20, 2013, 1:42PM
    • Yields have declined by about 2% a year (halves over 35 years). We're doubling our population in the next thirty years and we have just become a net importer of food (not taking into account huge amounts of ag land have been sold to overseas) Our consumption will therefore outstrip supply by 4.....If everything else unfolds the way it seems (Australia going broke), we're going to have rich people gorging themselves while others starve IN AUSTRALIA. Horrifying I know, I'm also glad I won't be here to see it and have hopefully set up those I love to get through it. It's a very sad and very stupid outcome our politicians have led us straight in to.. We have to be the most naive people in the world to democratically put these people in charge..

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 2:55PM
    • We wont double population in thirty years John.
      Not a prayer of that happening.

      Commenter
      yada
      Location
      Date and time
      September 20, 2013, 3:35PM
  • WA to sell assets to get AAA rating back after the biggest mining boom in history. What then? You seriously couldn't make this sht up. Australia in depression within ten years. We'll done Australian voters. YOU have squandered all of Australia's wealth.

    Commenter
    JohnBB
    Location
    Date and time
    September 20, 2013, 10:17AM
    • Spending money on the some of best education and health systems in Australia. Trying invested to build infrastructure for the future growth in Population over here. Rail, Roads, Hospitals ect. Yeah it all costs money, budget blowouts happen (otherwise these things would never make it through the parliament) just like your big commercial gorgons and pluto projects. You look at places like Aberdeen, the production phase looks sound, plenty of opportunity in LNG and mining to come. energy demand is almost exponential from asia. Need to focus on making Perth/Australia an Asian Energy and Materials Service expertise hub for SE Asia. I hope that's the plan anyway.

      Commenter
      WhoAreThesePeople
      Location
      Date and time
      September 20, 2013, 11:09AM
    • @WhoAreThesePeople. What possible reason would there be to populate an area in decline? No matter how it's looked at, it's the most ridiculous thing that could be done. It's a paradigm we no longer question. We are being scammed.Anyone able to answer how populating with the same demographic as our present population will tackle an aging population? The biggest con an entire nation has ever fallen for.

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 12:27PM
    • Decline, you think every down cycle is Armageddon. get a grip.

      Commenter
      WhoAreThesePeople
      Location
      Date and time
      September 20, 2013, 1:21PM
    • I'm not talking about cycles. Australia has spent all of its' money and sold all its' assets. We no longer have an income. Take away the trillions in asset sales, a trillion in personal debt, a lazy 0.4 trillion gov debt and we'd already be starving. Now we're reaching saturation with all those, we're doomed.

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 2:02PM
    • You gotta laugh, the capital intensive phase is where most of the benefit for Australia was, mostly from employment. The operation phase will require 95% less staff and 70% of profits will go o/s.

      Barnett has egg on his face again.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      September 20, 2013, 2:03PM
    • Correct John. Our exponentially growing urban areas are increasingly irrelevant and nothing more than a growing deadweight on the economy. They have to be provided for at a great cost and they suck in vast quantities of imports relative to their exports. It seems people have not truly digested the meaning of the floating LNG plants. The FLNGs show how utterly irrelevant urban Australia has become. It's the Koreans with who have developed the expertise, technology and the infrastructure to build FLNGs and they will get better and better, while we struggle to build simple urban infrastructure to meet the weight of our exponentially growing population. Meanwhile we are so bereft of expertise and training that requires a modicum of science that these days we import the humble pharmacist and local GP from third world countries. There is no better index of our backwardness as to walk in any hospital and see how few white Australian doctors there are. A generation ago this was unthinkable. Talk about making Perth a hub for Asian energy and materials is a joke. These blokes haven't got a clue. About the best we can hope for is to supply them with welders and plumbers. Any expertise we have will be imported and any ambitious top class person will not be wasting his time in an increasingly polarised and nasty Australia.

      Commenter
      Catch 22
      Location
      Date and time
      September 20, 2013, 2:06PM
    • Well said Catch 22. I wonder if it occurs to anyone that we are taking the cream of the third world in doctors etc? What a disaster we have unfolding here in Australia. Not to even mention we are more than double the sustainable ecological population. That is a whole other massive problem no one (including the environmentalists) wants to talk about. Thank God, we don't live forever to see this unfold.

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 2:30PM
    • Agree Allan. EVERY politician has egg on their face. As will all the people that defend the indefensible things the politicians do. It's hard to laugh knowing where this MUST end. When will Australia start asking why are we populating a country that's going broke?

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 2:37PM
  • For those long suffering holders of Discovery Metals...hang on it could be an interesting week!

    Commenter
    Happy hippy
    Location
    Nimbin
    Date and time
    September 20, 2013, 10:10AM
  • Oh No, don't tell me BLY are going to screw me again. I only just bought them, at what i though was a very good price to recoup some previous losses !.

    Commenter
    When will i learn about miners !
    Location
    Vic.
    Date and time
    September 20, 2013, 10:10AM
    • Might be good news.. Be positive! :)

      Commenter
      The Romaniac
      Location
      Date and time
      September 20, 2013, 10:54AM
    • If it goes any lower, I suspect there will be some extremely unhappy shareholders!! Imagine those that bought in about $20/share... =/

      Commenter
      panda
      Location
      perth
      Date and time
      September 20, 2013, 11:31AM
  • Not even a week in power and WA premier wants to increase GST. TA will start will NO NO and change to YES YES with a logic that people will understand. The moral of the story is that promise the world to win the election and then we will do whatever we want-. typical John Howard way of doing things.

    Commenter
    xyx
    Location
    Date and time
    September 20, 2013, 10:01AM
    • Too early in the day to start this sort of rubbish xyz, go to a politics page.

      Commenter
      When will i learn about miners !
      Location
      Vic.
      Date and time
      September 20, 2013, 10:17AM
    • Totally in fave GST up, we have the lowest in the world with Eu abt 21-24 percent, NZ 15
      It would stop people aimlessly wandering around mall buying stuff they do not need
      We need to pull our heads in cut back on retail hours too. Too much like USA
      Most shoppes closed midday on Sat in the civilized world, so that people can be with the family Booze outlets too
      Save for a rainy day and buy your Vodka on Friday:}}

      Commenter
      Stuarth44
      Location
      Date and time
      September 20, 2013, 10:27AM
    • If we leave the taxation system as it is, we borrow money from China and Japan and then sell them our national assets to pay it back.

      Lose/Lose for us.

      Commenter
      Opinion Only
      Location
      Melbourne
      Date and time
      September 20, 2013, 10:27AM
    • Doesn't matter what politician. Desperation will prevail and all sorts of reform s coming your way because like I've said for five years we're going broke. No one wanted to listen to "nay sayers " "rooned" was the kind of replies I'd get. Now everyone's going to pay for being so ridiculously naive believing all the BS intelligent economy, modern economy, free trade. We are doomed and it was 100% predictable and preventable.

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 10:29AM
    • Would you prefer a leader who stuck to a promise dogmatically, or one who recognised when it was in the best interest of the nation to change position? The Labor ACT Chief Minister is also wanting GST increased. Bi-partisan support for an idea.

      Also, TA didn't win an election on GST related promises. The media drummed up a story about GST because they wanted something else to report. TA won the election because of 6 years worth or poor decision making from the previous government.

      Commenter
      Common_Sense
      Location
      Date and time
      September 20, 2013, 10:29AM
    • Lets get back to the Henry tax review first
      Mr Barnett.

      Commenter
      yada
      Location
      bobf wa
      Date and time
      September 20, 2013, 10:30AM
    • "there will be no Carbon Tax under a Labor Government"

      Typical politician way of doing things**

      Commenter
      Andrew137
      Location
      Date and time
      September 20, 2013, 10:39AM
    • Stuart, i agree with you in principle about the shopping malls and non needed goods. Unfortunately there two types of needy, those that still smoke, gamble, and booze, those that have the latest electronic gadgets and those that use their kids welfare support to buy plasma TV's. Then there are the others, doing it hard, ex partners of people who will not pay maintenance (usually supported by DHS and the police in this ploy) and are bringing up children on their own, those who had their benefits cut by Gillard and put on job-start, those who live literally week by week from hand to mouth. I am fortunately not one, so increase in GST - OK, but we must have a policy of fairness that protects the reel needy.

      Commenter
      When will i learn about miners !
      Location
      Vic.
      Date and time
      September 20, 2013, 11:02AM
    • Tony Abbott didn't need to promise no GST changes (he would've won anyway). Everyone knows taxes have to increase!

      Commenter
      panda
      Location
      perth
      Date and time
      September 20, 2013, 11:20AM
    • Tell you what Stuarth, I'll decide how to spend my time and money. I don't need the government deciding for me.

      Commenter
      4Seam
      Location
      Date and time
      September 20, 2013, 11:24AM
    • "Now everyone's going to pay for being so ridiculously naive believing all the BS intelligent economy, modern economy, free trade. We are doomed and it was 100% predictable and preventable." I'll wear that hat until proven otherwise :) Look at the competition. As an expat with 10+ years in developing Asia business, my view is that Australia's highly educated workforce and strong governance will continue to support its economy. Many of our competitors are still struggling with basic economic and efficiency/governance issues that will take them many decades to resolve before they can even think of competing seriously. And even then , more wealth there will lift the Aussie economy anyway. Yes the Aussie economy will share some bumps along the way but it's not survivalist mode yet. Not in our lifetimes. I'd buy on the next big dip, no doubt of it. Nice big dip please.

      Commenter
      green sheep
      Location
      relaxed and comfortable
      Date and time
      September 20, 2013, 11:46AM
    • @Green sheep....."Not in our lifetimes."...That is exactly my point. We are shafting our own kids. I have to respect your view as an expat, however, in the long run Asia will out work us, out smart us, and out compete us. They will own all our assets, and we will work for them at an "agreed" rate. Australia's life style will decline from here quite rapidly and will never, ever, be the same. Our kids will curse us for this and I for one want to be on the record as opposing this short term selfish greedy madness. Ever thought green sheep, what are the consequences if you're wrong?

      Commenter
      JohnBB
      Location
      Date and time
      September 20, 2013, 12:34PM
    • Mr Barnett wouldn't be trying a bit of the old distractaroo re the AAA rating would he?

      Commenter
      col
      Location
      melbourne
      Date and time
      September 20, 2013, 1:23PM
    • maybe. I've been wrong about a lot of things. And that's just in the last 15 minutes! Hope for the best, prepare for the worst. On the other hand I also remember when people thought the Japanese were going to end up owning everything.

      Commenter
      Green Sheep
      Location
      thinking of the gold coast
      Date and time
      September 20, 2013, 3:10PM
  • Considering how large a shock the no change from the FOMC was , the reaction in the equity markets has been reasonably controlled, hopefully this is a sign of an element of rationality , personally I still expect a pull back (easier to sell and take profits at highs than commit new money to buying)

    Commenter
    Chris
    Location
    Sydney
    Date and time
    September 20, 2013, 9:54AM
    • According to Bernanke, the US and the world are in a very fragile state, I'm surprised there hasn't been some major falls. If people lose confidence in the ability of stimulus to fix everything, then I'm not sure if they have any other tricks left.

      Commenter
      buysell
      Location
      Date and time
      September 20, 2013, 10:49AM
    • buysell - people will not lose confidence while several of the largest Unions/Economies continue to print money to bail out the ever looming internal credit crunch that faces ALL of said regions. In this domino row we have India, Japan, China (yes China), USofA, the UK, EU (basket case) and a host of Mid-East / African nations either in civil war or facing civil discontent. Things have got so much better since Lehman's collapsed with all the so called 'reforms' that have taken place...

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 20, 2013, 2:01PM
    • Whats new Lib, its been like this for decades, we march on. As Arnie says

      "Up, Down, more energy"

      Commenter
      WhoAreThesePeople
      Location
      Date and time
      September 20, 2013, 3:19PM
Comments are now closed