INTERNATIONAL AGENCIES

IMF outlook perks up for jobs, inflation

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 19-Apr-17

The International Monetary Fund has forecast global economic growth of 3.5 per cent in 2017 and 3.6 per cent in 2018. The latest World Economic Outlook report also forecasts that Australia’s economic growth rate will rise to 3.4 per cent year-on-year by the December 2017 quarter, while the economy is forecast to grow by three per cent in 2018. Meanwhile, the IMF expects the nation’s unemployment rate to fall to 5.1 per cent in 2018. The IMF’s outlook for Australia is much more bullish than the most recent forecasts issued by the Treasury.

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

OECD urges interest rate hikes in 2017

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 29-Nov-16

The OECD states in its latest global economic outlook that the Reserve Bank of Australia is likely to begin increasing official interest rates in late 2017. It also argues that the prospect of rate rises in the US will allow the RBA to act without any concern about putting upward pressure on the Australian dollar. Meanwhile, the OECD forecasts that Australia’s economic growth will rise toward three per cent in 2018, while it concludes that there is still scope for the Federal Government to increase spending on infrastructure projects.

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

Big business carries hefty burden as world moves to reform tax structures

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Original article by David Uren
The Australian – Page: 4 : 27-Sep-16

A new report shows that company tax revenue accounts for 4.9 per cent of Australia’s GDP, compared with an average of just 2.9 per cent among OECD nations. The report also notes that 28 OECD countries have a company tax rate that is lower than Australia’s 30 per cent rate, compared with just 12 when the current tax rate was introduced in 2000. In addition, the average company tax rate among OECD member nations is now 24.7 per cent, down from 31.6 per cent in 2000.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIAN LABOR PARTY, ACTU

PM to make captain’s call on Rudd

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 29-Jul-16

The nomination of former prime minister Kevin Rudd as a candidate for secretary-general of the United Nations was a key issue on the agenda of a cabinet meeting on 28 July 2016. Scott Morrison, Peter Dutton and Mathias Cormann are among the ministers who opposed nominating Rudd, although Foreign Minister Julie Bishop supports his nomination. Prime Minister Malcolm Turnbull will decide whether Rudd should be nominated to succeed Ban Ki-moon. He intends to consult with Rudd and senior members of the Coalition before making a decision.

CORPORATES
UNITED NATIONS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, LABOUR PARTY (NEW ZEALAND)

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