INTERNATIONAL AGENCIES

G20 growth target ends in failure

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Original article by David Uren
The Australian – Page: 1 & 4 : 25-Jul-16

The Group of 20 finance ministers have reiterated their commitment to a global economic growth target. This is despite new projections showing that the two per cent growth target for 2018 set at the G20 summit in Brisbane in 2014 is unlikely to be achieved. Australian Treasurer Scott Morrison and his predecessor Joe Hockey say this growth target is still relevant. Adam Triggs of the Australian National University says the latest forecasts from the International Monetary Fund suggest that the global economy will be worth $US117.7trn by 2018, rather than the target of $US123.9trn set in 2014.

CORPORATES
GROUP OF TWENTY (G-20), AUSTRALIA. DEPT OF THE TREASURY, INTERNATIONAL MONETARY FUND, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, SUPREME COURT OF THE UNITED STATES

Brexit forces IMF to clip growth outlook

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 11 : 20-Jul-16

The International Monetary Fund has scaled back its forecast for global economic growth in 2016 from 3.1 per cent to three per cent. The global economy is now forecast to expand by 3.4 per cent in 2017, compared with previous expectations of 3.5 per cent growth. The UK’s vote to leave the European Union contributed to the decision to downgrade the growth forecasts, while the IMF adds that a range of geopolitical risks could also affect global growth.

CORPORATES
INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA

Budget cuts needed for AAA: JPMorgan

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 2 : 14-Apr-16

Australia’s credit rating has not been downgraded since 1986, but Sally Auld of JP Morgan warns that the nation’s Budget deficit, national debt and current account deficit are now at similar or higher levels. She says Australia’s coveted triple-A credit rating may be at risk unless the May 2016 Budget includes additional reductions in government expenditure. Meanwhile, the International Monetary Fund says export-focused countries must reduce government spending in anticipation that commodity prices will remain low for some time.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, INTERNATIONAL MONETARY FUND, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC

Job-loss aid ‘ignores plight of thousands’

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Original article by David Uren
The Australian – Page: 4 : 7-Apr-16

The Australian Government’s program to assist retrenched workers has been criticised by the OECD, which describes it as inequitable as it tends to favour workers in certain industries or regions. Employees in the steel, resources and car industries are among those who have benefited from labour assistance programs that are aimed at helping them to get new jobs. However, the OECD notes that many more employees in other sectors are retrenched each year and often do not receive the same level of assistance from the government.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, QUEENSLAND NICKEL PTY LTD, ARRIUM LIMITED – ASX ARI, ALINTA ENERGY (AUSTRALIA) PTY LTD, CATERPILLAR, AUSTRALIA. DEPT OF HUMAN SERVICES. CENTRELINK

IEA head warns low oil prices may threaten energy security

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 10-Feb-16

The International Energy Agency’s executive director, Fatih Birol, says investment in oil production is expected to fall by 16 per cent in 2016, following a 20 per cent downturn in 2015. He has warned that some higher-cost projects may be delayed or put on hold if the crude oil price remains at current levels. This in turn could increase reliance on oil from the Middle East, where geopolitical tensions could affect global oil supply. Birol also noted that Australia’s LNG projects will benefit global energy security in the long-term.

CORPORATES
INTERNATIONAL ENERGY AGENCY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Australia an also-ran in TPP gains: World Bank

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Original article by Greg Earl
The Australian Financial Review – Page: 6 : 12-Jan-16

A study released by the World Bank in early January 2016 suggests that there will be modest benefits for Australia from the proposed Trans-Pacific Partnership (TPP) trade agreement. The TPP is forecast to result in a rise in Australia’s GDP of less than two percentage points by 2030. All other countries-signatories to the TPP, with the exception of the US, are expected to experience larger rises in GDP.

CORPORATES
WORLD BANK, TRANS-PACIFIC PARTNERSHIP

Farmers applaud subsidy cut but say it’s just a start

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 22-Dec-15

New South Wales wheat, barley and canola farmer John Booker has welcomed the World Trade Organization’s decision to abolish agricultural export subsidies. He does not expect to benefit immediately from the decision, but he is optimistic about the long-term gains. Tony Mahar of the National Farmers Federation argues that the domestic support subsidies that some countries provide to farmers must also be scrapped.

CORPORATES
WORLD TRADE ORGANIZATION, NATIONAL FARMERS’ FEDERATION LIMITED, CATTLE COUNCIL OF AUSTRALIA, AUSTRALIAN DAIRY INDUSTRY COUNCIL

OECD growth forecast cut to 2.6pc from 3pc

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Original article by Jacob Greber
The Australian Financial Review – Page: 8 : 10-Nov-15

The OECD has downgraded its economic growth forecast for Australia in 2015 from 2.3 per cent to 2.2 per cent. Meanwhile, the economy is expected to expand by 2.6 per cent in 2016, compared with the OECD’s previous forecast of three per cent growth. The OECD’s economic outlook report suggests that Australia’s unemployment rate will remain at around 6.2 per cent in 2016. The OECD has also urged the Federal Government to pursue tax reform, including an increase in the rate and scope of the GST.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

IMF finds our growth near target

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 7-Oct-15

The International Monetary Fund’s revised economic growth rate for Australia in 2015 is 2.4 per cent, which is slightly lower than its previous forecast in April. However, its forecast for global economic growth has been cut by 0.4 per cent to 3.1 per cent. The IMF’s latest World Economic Outlook has also maintained its economic growth forecasts for China in 2015 and 2016.

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

Australia lags in competitive rankings

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Original article by Ben Potter
The Australian Financial Review – Page: 10 : 1-Oct-15

Australia is ranked 21st in the World Economic Forum’s 2015-16 Global Competitiveness report, compared with 22nd position previously. However, the nation is ranked 26th in terms of innovation and 36th for labour market flexibility. Australian Industry Group CEO Innes Willox says the report demonstrates the need for government policy to focus on areas such as innovation, workplace relations and taxation. Switzerland and Singapore are the two most competitive nations, according to the report.

CORPORATES
WORLD ECONOMIC FORUM, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CSL LIMITED – ASX CSL