INTERNATIONAL AGENCIES

Punishing company tax regime on par with Third World

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Original article by David Uren, Chris Griffith
The Australian – Page: 1 & 2 : 16-Jan-19

A new report from the OECD shows that France is the only developed nation with a higher company tax rate than Australia at present. However, the French government intends to reduce its corporate tax rate to 28 per cent, while the Coalition’s tax reform policy has been stalled in the Senate. The OECD report also notes that Costa Rica and Chile are the only countries in the world that have a higher tax rate on new business investment than Australia.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, KPMG AUSTRALIA PTY LTD, CURIOUS THINGS, MURU MUSIC

Coal demand resilient in face of risks

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 19-Dec-18

A new report from the International Energy Agency shows that coal-fired power generation increased by three per cent in 2017 and is expected to grow again in 2018. The IEA’s annual coal outlook also notes that coal’s share of the global energy mix was steady at 38 per cent in 2017. IEA executive director Fatih Birol says coal will remain a major source of power generation for some time. Meanwhile, the IEA forecasts that Australia’s thermal coal exports will rise over the next five years.

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INTERNATIONAL ENERGY AGENCY, ADANI MINING PTY LTD

Threat to good times, says OECD

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 10-Dec-18

A new report from the OECD concludes that Australia’s housing market is likely to experience a soft landing. However, the OECD notes that the nation’s 27-year record of economic growth would be at risk if there is a hard landing in the property market. The international agency expects Australia to record economic growth of 3.1 per cent in 2018 and 2.9 per cent in 2019, although these forecasts were made prior to the release of the latest national accounts data.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

IMF warns on debt and high house prices

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Original article by John Kehoe
The Australian Financial Review – Page: 9 : 11-Oct-18

The International Monetary Fund’s latest global financial stability report notes that Australia is one of several advanced economies where the rising cost of house prices is a concern. The IMF also expressed concern that the household debt-to-GDP ratio is rising in Australia and a number of other countries. Australia’s household debt-to-GDP ratio is currently around 122 per cent, while the nation’s household debt-to-income ratio is close to 200 per cent.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Economic outlook clouded but IMF forecasts may be wide of the mark

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Original article by Glenda Korporaal
The Australian – Page: 25 : 10-Oct-18

The International Monetary Fund’s chief economist Maurice Obstfeld has conceded that rising trade tensions means its previous forecast for global economic growth may have been "over optimistic". The IMF has cut its growth forecast from 3.9 per cent to 3.7 per cent, but the ANZ Bank’s chief economist Richard Yetsenga anticipates global growth of nearly four per cent. ANZ also expects China’s economy to grow at a slightly higher pace in 2019 than the IMF has forecast.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

US, China trade war warning

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Original article by Simon Benson, David Uren
The Australian – Page: 1 & 4 : 10-Oct-18

The International Monetary Fund expects Australia’s economic growth to slow to just 2.8 per cent in 2019, citing the impact of the US-China trade war. However, the IMF now expects the domestic economy to expand by 3.2 per cent in 2018, which is slightly higher than its previous forecast. Federal Treasurer Josh Frydenberg says a resolution of the trade tensions between the US and China is in the interests of Australia and the world. The IMF has scaled back its global economic growth forecasts for both 2018 and 2019 to 3.7 per cent.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. DEPT OF THE TREASURY, UNITED STATES. DEPT OF STATE, CHINA. MINISTRY OF COMMERCE

Trade war pain will be felt globally: OECD

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Original article by Jacob Greber, Patrick Durkin
The Australian Financial Review – Page: 15 : 21-Sep-18

A report from the OECD has warned that the US-China trade war could undermine global economic growth. The interim economic outlook report notes that the tariff war has already had an impact on the global trade growth rate, which slowed significantly during the first half of 2018. The OECD says global investment, jobs and living standards will be adversely affected if the trade war escalates. It also expects the US to record GDP growth of 2.9 per cent year-on-year in 2018, while it still expects growth of 6.7 per cent in China. Australia’s GDP growth rate is forecast to be 2.9 per cent in 2018 and three per cent in 2019.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STATE STREET GLOBAL ADVISORS LIMITED, L1 CAPITAL PTY LTD

Trade spats pose serious threat: WTO

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Original article by Timothy Moore
The Australian Financial Review – Page: 9 : 6-Jul-18

Group of 20 countries adopted 39 new trade restrictive measures between mid-October 2017 and mid-May 2018, according to the World Trade Organization. Additional restrictive measures have been announced since its survey, and WTO director-general Roberto Azevedo has urged G20 nations to show restraint when it comes to the adoption of trade restrictive measures. US President Donald Trump has accused the WTO of treating the US "very badly", and there are suggestions that he wants the US to leave the WTO.

CORPORATES
GROUP OF TWENTY (G-20), WORLD TRADE ORGANIZATION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Liberals split over UN rights council

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Original article by Primrose Riordan
The Australian – Page: 2 : 21-Jun-18

Liberal MP Craig Kelly says Australia should join the US in withdrawing from the United Nations’ Human Rights Council, arguing that its members include some of the world’s most repressive regimes. Although Liberal senator Eric Abetz has welcomed the US decision, he says Australia should see how the UNHRC responds before taking any action. Senator James Paterson favours continued membership of the UNHRC, while Foreign Minister Julie Bishop has expressed disappointment with the Trump administration’s decision.

CORPORATES
UNITED NATIONS. HUMAN RIGHTS COUNCIL, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN JEWISH ASSOCIATION

OECD’s blue-sky outlook supports budget’s growth projections

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Original article by David Uren
The Australian – Page: 5 : 31-May-18

The OECD has forecast that the Reserve Bank will be able to commence tightening monetary policy by the end of 2018 due the outlook for the Australian economy. The OECD expects economic growth of 2.9 per cent in 2018 and three per cent in 2019, while further strong growth in the employment market is forecast to have a flow-on effect for wages by the end of 2018. However, the OECD warned that the risks associated with high house prices require "continued vigilance".

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY