The Economy

 

Michael Pascoe

Your week wasn't this bad

Michael Pascoe 4:45 PM   If you've had a rough week courtesy of market volatility, just consider how much worse it could have been.

Consensus worth a try to fix the budget

Ross Gittins

Ross Gittins   It was easy to miss, but a proposal with much practical potential arose from this week's meeting of the great and good at the National Reform Summit. It was an idea that could break the budget impasse.

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Australia Post applies for $1 stamp

Post box.

Australia Post is seeking an almost 43 per cent increase in the price of postage stamps.

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China likely to trigger global recession: Citi

China is seeking to defend its 7 per cent economic growth goal at a time when concern over its slowing economy is fuelling volatility in global markets

Sangwon Yoon   China's leaders will act too late to avoid a major downturn, says the economist who brought you the term 'Grexit.'

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US income data provides reality check

Michael Feroli, chief US economist for JPMorgan Chase, said he still gives more weight to the GDP number, but the low GDI growth rate does affect his thinking.

Peter Coy   Not many people noticed that US gross domestic income increased at an annual rate of just 0.6 per cent.

Investment still weak, but rate of decline slowing

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Mark Mulligan   Business investment continued to contract sharply in the June quarter, and won't improve any time soon, ABS capital expenditure survey shows.

Why you should pay more GST and less income tax

Jessica Irvine

Jessica Irvine   Taxes are the price we pay for all the public services we demand of government. They are a necessary evil. So how do we decide which taxes are more or less evil?

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NSW stays strong as home building boom peaks, says Boral

Some 30 per cent of Boral's $4.3 billion in revenue comes from Australian housing.

Tim Binsted   Boral's boss has dismissed the row over royal commissioner Dyson Heydon's integrity as a distraction from a crisis in the construction industry.

Former Treasury boss sounds recession warning

Former Treasury head Martin Parkinson warned that Australia could sacrifice as much as 5 per cent of the economy in missed economic growth.

Peter Martin   Australians are "sleepwalking into a real mess", facing the equivalent of a recession in the next ten years as income growth looking far lower than officially forecast, the National Reform Summit has been told.

More volatility could force RBA's hand

A group of forecasters says weak inflation could contribute to a rethink in Australian interest rates.

Mark Mulligan   Further market volatility could force a rethink by the Reserve Bank of Australia on its next interest rate move.

Reform agenda is in the wrong hands

Michael Pascoe

Michael Pascoe   Too bad it's politicians we rely on to drive economic reform.

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Bait and switch habits are slow to die

Ross Gittins

Ross Gittins   Beware of treasurers promising to protect you from the ravages of bracket creep. They're like Mafia bosses promising to protect you from robbers and thieves.

Reducing gas use might be as easy as turning on your air conditioning

Authors of a new study say heat pump technology can heat a house as comfortably as gas-ducted heating, but at much lower costs.

Tom Arup   Thousands of Victorian households are missing out on cheaper bills because they are not using their already installed reverse cycle air conditioners to heat their homes as an alternative to gas systems.

October US Fed Reserve rate rise on Wall St radar

Janet Yellen, chair of the US Federal Reserve.

Traders and investors have been betting for months and October is a long shot, but Wall Street isn't ruling it out.

Bets on third rate cut surge amid ASX sell-off

Bond traders are now pricing in a 76 per cent chance RBA cash rate cut by November after the latest stock market rout.

Mark Mulligan   Interest rate swap markets now showing a 76 per cent chance of a 25 basis point reduction by the November board meeting of the RBA.

NBN blowout may hike cost of internet: M2

The federal government has not increased its funding cap of $29.5 billion, meaning NBN will have to raise up to $26.5 billion from private sector sources including banks, bond raisings and international markets.

David Ramli   M2 Group boss Geoff Horth warns the $15 billion blowout in the cost of building the NBN could make the internet more expensive for Australians.

Malcolm Maiden

NBN blowout pressures government

Malcolm Maiden

Malcolm Maiden   The big NBN blowout asks the question anew: was it worth scrapping Labor's full-blown project?

Does this graph explain why our cities are clogged?

Ross Gittins

Ross Gittins   Huge infrastructure projects have great appeal for some but are less economically effective than doing maintenance.

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The most important economic chart this week

Dark days for the world oil industry.

John McDuling   It was another seismic week in global business. But if you look at only one chart, make it this one.

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Michael West

Who wants to grab a billionaire?

Michael West dinkus Dinkus

Michael West   The Rich Mates Act amendment bill was introduced to Parliament on Thursday.

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Will Ashley Madison hack cost the economy?

Ashley Madison is, and always was, a terrible and very expensive way of having an affair.

Josh Barro and Justin Wolfers   Divorce is expensive, so could the Ashley Madison hack hurt the economy? Or even help it?

Victoria, NSW at odds on tax reform

Victorian Treasurer Tim Pallas says that after compensation a proposed increase in the GST from 10 to 15 per cent would raise very little for states.

Peter Martin   NSW and Victoria are at loggerheads going into Friday's tax reform meeting, with NSW wanting an increase in the GST, while Victoria wants a higher Medicare Levy.

Why the Fed is wishy-washy on rate timing

Mohamed El-Erian says he would have raised interest rates in the US already.

The US Federal Reserve will remain noncommittal until the very last moment, says Allianz's Mohamed El-Erian.

House prices hurting Australia and nation's policies making it worse

The cost of buying or renting a house is putting an intolerable strain on many Australians.

Clay Lucas and Rachel Browne   Australia's housing market is becoming increasingly unaffordable, and the massive jump in the cost of buying or renting a house is having a profoundly negative impact on Australia, according to the latest snapshot of the nation's health and welfare.

RBA boss prods leaders holding back reform

Glenn Stevens is entering his final 12 months as Australia's central bank governor.

Glenn Stevens is entering his final 12 months as Australia's central bank governor and he has a message for the political class: You're holding us back.

Young Aussies won't 'do what needs doing'

"It's the new workforce culture that is the big problem. They expect to be paid high dollars and expect certain conditions. Agriculture can't afford that.": Bannister Downs Dairy managing director Sue Daubney.

Julie-anne Sprague   Gina Rinehart-backed Bannister Downs Dairy has warned of a problematic "workforce culture", in which young people did not want to do menial labour.

$A steady as RBA proves upbeat

The Aussie got a short-lived lift after the release of the central bank's August board meeting minutes, which reiterated its gentler tone on the currency.

Vanessa Desloires   The Australian dollar was largely flat on Tuesday, despite a relatively upbeat account of the economy by the RBA.

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Michael Pascoe

This is the way it is, says RBA

Michael Pascoe

Michael Pascoe   The minutes of this month's Reserve Bank board meeting answer a couple of important questions about the Australian economy.

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GST on online imports will 'clog up' deliveries: DHL

The GST-free threshold for imported parcels could be cut from $1000 to just $20.

Jared Lynch   Online shoppers should be treated the same as airline passengers, who can claim most of their personal overseas purchases as duty free, according to one of the world's biggest mail and logistics companies.

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RBA counts on lending crackdown to contain house prices

the RBA is counting on a regulatory crackdown on bank lending to buy-to-let and buy-to-sell investors to put a lid on runaway property price inflation in Sydney and Melbourne.

Mark Mulligan   Activity in many non-mining sectors of the economy remains subdued, according to the RBA, although housing construction and investment continued to offset some of this sluggishness.