ECONOMIC INDICATORS – AUSTRALIA

Publishers unite to spread the good word

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Original article by Darren Davidson
The Australian – Page: 19 & 22 : 11-May-16

A new report shows that the print and digital advertising revenue of Australia’s major news publishers fell by a lower-than-expected 6.7 per cent in 2015, to $A2.4bn. The News Media Index report outlines the advertising revenue of News Corp Australia, Fairfax Media, West Australian News­papers and APN News & Media, which account for around 90 per cent of the sector. Traditional media groups have been able to offset a decline in ad revenue with growth in digital subscriptions.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, WEST AUSTRALIAN NEWSPAPER HOLDINGS LIMITED, APN NEWS AND MEDIA LIMITED – ASX APN, SMI MEDIA INCORPORATED, THE NEWSPAPER WORKS LIMITED, NEWSMEDIAWORKS, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Australian April unemployment is 10.4% for third consecutive year. Under-employment steady at 7.7%

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-May-16

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate fell by 0.6 per cent to 10.4 per cent in April 2016. The number of people in the workforce has fallen by 134,000 to 12,810,000 (although up 183,000 since April 2015), and 11,476,00 Australians are employed (up 158,000 in the last 12 months). Meanwhile, the number of people who are under-employed has fallen by 149,000 in the last 12 months to 988,000 (7.7 per cent of the workforce). The official unemployment rate was 5.7 per cent in March 2016. Roy Morgan Research executive chairman Gary Morgan says the Reserve Bank’s decision to cut interest rates to a record low 1.75 per cent shows the weakness the overall Australian economy is facing. The ongoing job losses throughout the economy also provide clear evidence that the ABS unemployment figures released monthly lack credibility. ABS estimated unemployment of only 5.7 per cent in March, indicating a booming Australian economy, which is most certainly not reflected in other measures and clearly not believed by the RBA, which is once again cutting interest rates.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ARRIUM LIMITED – ASX ARI, QUEENSLAND NICKEL PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ELECTROLUX PTY LTD

Turnbull’s biggest economic landmines

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 9-May-16

A number of factors may affect the election prospects of Prime Minister Malcolm Turnbull on 2 July 2016. The Reserve Bank holds its next monetary policy meeting on 7 June. While rating agencies are unlikely to downgrade Australia’s credit rating during the election campaign, Turnbull will be concerned about the possibility of Australia being placed on credit watch in the wake of the Budget. Economic data to be released during the 56-day campaign include the national accounts for the March quarter and jobs data for both May and June.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

ANZ-Roy Morgan Australian Consumer Confidence Ticks up 2.2pts to 113.9

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-May-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose 2.0 per cent to 113.9 in the week ended 1 May 2016, partly reversing the fall in the previous week and bringing confidence back above its long run average. Consumers’ views towards their current personal finances rose 2.9 per cent, although households’ views towards the financial outlook fell by 0.9 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

RBA delivers Turnbull a pre-election rate cut

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 4 : 4-May-16

The Australian sharemarket gained 2.1 per cent on 3 May 2016, after the Reserve Bank reduced the cash rate by 25 basis points to a record low of 1.75 per cent in the wake of a downturn in inflation. The ANZ Bank is the only "big four" bank that is yet to confirm that it will respond by reducing its mortgage interest rates. Meanwhile, Westpac and the Commonwealth Bank expect another official interest rate cut in August, although Goldman Sachs forecasts that rates will remain on hold until November.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

House prices edge up in April

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 3 : 3-May-16

The CoreLogic RP Data Home Value index was 1.7 per cent higher in April 2016 than in March. House prices rose by 2.4 per cent in Sydney during April, while prices in Brisbane and Adelaide increased by 2.2 per cent and 2.0 per cent respectively. House prices in Melbourne rose by a more modest 1.1 per cent, but house prices declined in both Hobart and Darwin. Meanwhile, the gross rental yield for residential properties in the capital cities fell to a new low of 3.4 per cent in April.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Turnbull backs Kidman move as foreign cash drops

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Original article by David Uren, David Crowe
The Australian – Page: 1 & 2 : 2-May-16

A report from the OECD indicates that foreign investment in Australia fell by 44 per cent in 2015, to US22.6bn ($A29.7bn). This compares with $US39.6bn in 2014 and $US55.9bn in 2013. Australia’s share of global foreign investment in developed economies has fallen to just 1.1 per cent, down from 7.5 per cent between 2011 and 2013. Meanwhile, Prime Minister Malcolm Turnbull says a preliminary decision by Treasurer Scott Morrison to block the sale of S. Kidman & Company to Chinese interests is justified given the sheer size of the landholding.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, S KIDMAN AND COMPANY PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, LIBERAL PARTY OF AUSTRALIA, SKY NEWS

Traders kiss goodbye to Aussie’s high hopes

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 29-Apr-16

The Australian dollar has retreated from recent highs after the latest inflation data showed that the CPI fell by 0.2 per cent in the March 2016 quarter. Currency traders now do not expect the currency to test the $US0.80 level in the near-term, while the inflation data has also heightened expectations of further monetary policy easing. However, currency strategists are divided about the outlook for the dollar, with year-end forecasts ranging from $A0.70 to $A0.78.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HSBC AUSTRALIA HOLDINGS PTY LTD, MARKET ECONOMICS PTY LTD, CAPITAL ECONOMICS LIMITED, THINKFOREX

ANZ-Roy Morgan Australian Consumer Confidence dips to 111.7

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Apr-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 3.5 per cent to 111.7 in the week ended 24 April 2016, reversing the bounce in the previous week and falling back below its long run average. Consumers’ views towards their current personal finances fell by 3.3 per cent, although consumers’ views towards their future personal situation rose by 1.3 per cent. Roy Morgan Research executive chairman Gary Morgan says the fall in consumer confidence can be attributed to the economic uncertainty over the closure of Arrium and Electrolux, and continuing announcements of redundancies at several companies, and is also not surprising when one considers the pressures on the Australian economy – many of these issues are exacerbated by the Reserve Bank’s insistence on keeping interest rates much higher (currently at 2 per cent) than comparable commodity economies.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Deflation raises budget rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 28-Apr-16

The consumer price index fell by 0.2 per cent in the March 2016 quarter, with year-on-year growth of 1.3 per cent. The latest inflation data has raised the prospect that the Reserve Bank of Australia could cut official interest rates on 3 May, when the Federal Government will also deliver the 2016 Budget. National Australia Bank now expects the cash rate to be reduced in May, while financial markets now regard the chance of a rate rise to be 55 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED