O75 Public Administration

Investment strike keeps growth low

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Original article by Glenda Korporaal
The Australian – Page: 17 & 27 : 5-Dec-19

Commonwealth Bank economist Michael Blythe says the latest GDP data shows that Australia has a two-speed economy, with private sector spending down 0.1 per cent in the September quarter and 0.3 per cent year-on-year, while public sector spending increased by 1.1 per cent and 4.8 per cent respectively. Master Builders Australia has urged the federal government to fast-track smaller infrastructure projects, with chief economist Shane Garrett noting that businesses and consumers lack the confidence to spend at present.

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COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MASTER BUILDERS AUSTRALIA INCORPORATED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, WAGNERS HOLDING COMPANY LIMITED – ASX WGN

Australia dodges US tariff blitz

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Original article by Jacob Greber
The Australian Financial Review – Page: 11 : 4-Dec-19

US President Donald Trump has accused Brazil and Argentina of deliberately devaluing their currencies. He has retaliated by removing a tariff exemption on steel and aluminium imports from the two nations. Australian imports will continue to be subject to the tariff exemption; local aluminium producers have significantly cut their shipment to the US since May, when concerns were raised within the Trump administration about a sharp rise in export volumes. Trump has also flagged tariffs on imports from France in response to the nation’s digital services tax.

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Climate plan no barrier to trade deal

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Original article by Ben Packham
The Australian – Page: 4 : 4-Dec-19

Trade Minister Simon Birmingham says the federal government will seek a free-trade agreement with the European Union that is in Australia’s best interests overall. The EU’s ambassador to Australia, Michael Pulch, has indicated that Australia’s climate change policies will not affect negotiations for a free-trade deal. Paris Agreement signatories will review their carbon emissions reduction commitments in 2023, and Pulch hopes Australia will use this opportunity to increase its reduction targets.

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AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Low interest rates aren’t enough to boost wages growth: Economists

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Original article by Euan Black
The New Daily – Page: Online : 4-Dec-19

With official interest rates left unchanged at 0.75 per cent on 3 December, some economists contend that further rate cuts are necessary for the Reserve Bank to deliver on its employment and inflation targets. However, others argue that interest rates are already so low that further cuts will not do not much to stimulate the economy. Instead, they contend that wage increases are needed, and this in turn requires measures to boost labour productivity. Growth in productivity has averaged 1.1 per cent annually over the last five years, and Treasurer Josh Frydenberg has estimated that lifting it to 1.5 per cent would boost incomes by $3,000 a year.

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RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Coalition manoeuvres to keep union bill alive

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 4-Dec-19

The federal government will reintroduce the Ensuring Integrity Bill to the lower house on 4 December, after it was recently voted down in the Senate. The bill includes the amendments that were requested by Centre Alliance and One Nation, and Industrial Relations Minister Christian Porter has indicated that the government may be open to further changes in order to secure the bill’s support in the Senate. Porter has rejected suggestions that the bill would enable unions to be deregistered for minor breaches of workplace laws, such as administrative errors.

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AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, CENTRE ALLIANCE, ONE NATION PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Construction the drag on productivity

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Original article by David Marin-Guzman, Matthew Cranston
The Australian Financial Review – Page: 6 : 4-Dec-19

The Reserve Bank of Australia’s analysis shows that the construction sector was the biggest contributor to the decline in the nation’s labour productivity in 2018-19. The central bank’s Statement on Monetary Policy notes that this may be due to construction firms retaining idled workers in the hope that the residential development sector will rebound. However, the RBA’s analysis could weaken the CFMMEU’s recent proposal for annual pay rises of five per cent for New South Wales building workers.

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RESERVE BANK OF AUSTRALIA, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIAN BUREAU OF STATISTICS

Stimulus calls to ease as mine exports surge

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Original article by Patrick Commins
The Australian – Page: 2 : 4-Dec-19

Kristina Clifton of the Commonwealth Bank says high commodity prices were a big contributor to Australia’s $7.9bn current account surplus for the September quarter. Official data shows that government spending was also higher than forecast during the quarter. The figures have strengthened expectations that the latest national accounts data will show that the economy grew by at least 0.5 per cent in the quarter, and 1.7 per cent year-on-year. This would in turn reduce pressure on the federal government to pursue stimulus measures.

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COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS

ANZ-Roy Morgan Consumer Confidence up to 108.1

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Dec-19

ANZ-Roy Morgan Australian Consumer Confidence rose 1.2% to 108.1 in the week ended 1 December, its first gain in four weeks. Households’ views towards current financial conditions fell 1.6%, while views towards future financial conditions gained 4.2%. Consumers’ views toward current economic conditions declined 4.1% to its lowest point in four years; views towards future economic conditions gained 1%, although this comes after a cumulative loss of almost 10% over the prior two weeks. The ‘time to buy a household item’ index jumped 5.3%, albeit from a 10-year low in the previous reading. The four-week moving average of inflation expectations was up 0.1ppt to 4.0%, and the weekly reading jumped from 3.8% to 4.1%.

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ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Spending forecasts raise GDP fears

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Original article by Matthew Cranston
The Australian Financial Review – Page: 7 : 29-Nov-19

Data from the Australian Bureau of Statistics shows that business investment fell by 0.2 per cent in the September quarter and by 1.3 per cent year-on-year. Mining investment increased by 1.2 per cent in the year to September, while investment in equipment, plant and machinery was down 3.5 per cent. Josh Williamson of Citigroup says the latter figure is likely to reduce GDP growth in the September quarter by 0.15 percentage points.

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AUSTRALIAN BUREAU OF STATISTICS, CITIGROUP PTY LTD

Hastie helped spy find an ASIO haven

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Original article by Ben Packham
The Australian – Page: 1 & 2 : 29-Nov-19

Liberal MP Andrew Hastie has been linked to Wang Liqiang, who claims to have been a Chinese spy and is now seeking asylum in Australia. It has been revealed that Hastie was contacted by an associate of Wang via an encrypted telephone app in early October. Hastie, who chairs the parliamentary joint committee on intelligence and security, then contacted ASIO about Wang’s allegations regarding Chinese intelligence operations in Australia. The Chinese government maintains that Wang is a fraudster rather than a spy.

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LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED