UNITED STATES – ECONOMIC CONDITIONS

First Brands and Tricolor’s collapses are signs of what’s to come

roymorgansocial Leave a comment

Original article by Paul J. Davies
The Australian Financial Review – Page: Online : 1-Oct-25

US-based automobile loan specialist Tricolor Holdings recently filed for bankruptcy liquidation amid fraud allegations. Tricolor focused on subprime, often undocumented borrowers, and its collapses raises questions about the financial pressures on lower-income households and the economic impact of the Trump administration’s deportation drive. Meanwhile, car-parts supplier First Brands Group has filed for chapter 11 bankruptcy protection. First Brands is a privately-owned business that was built via debt-funded acquisitions and undermined by further borrowing secured against inventory and payments due from customers. Its collapse could turn out to be a ‘canary in the coal mine’ for aggressively leveraged buyouts and private credit lenders, especially in sectors where tariffs have resulted in big cost increases.

CORPORATES
TRICOLOR HOLDINGS, FIRST BRANDS GROUP

RBA can just sit back and watch the Fed

roymorgansocial Leave a comment

Original article by Karen Maley
The Australian Financial Review – Page: 30 : 13-Nov-17

The latest monetary policy statements of the Reserve Bank and the Federal Reserve used identical wording to describe the current state of the Australian and US economies. The Federal Reserve is widely tipped to increase official interest rates again in December, which will allow the Reserve Bank to observe the impact of a rate rise in a low-inflation, low wages growth environment before taking any action of its own. There is no pressing need for the Reserve Bank to act, given that the unemployment rate remains well above that of the US and is not expected to fall in the next two years.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Want to know where the $A is going? Here’s where to look

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 24 : 15-May-15

The Australian dollar was trading at around $US0.81 on 14 May 2015, and US economic data is likely to be a major influence on its outlook in the near-term. Most of the recent data suggests that US economic growth remains subdued, and the timing of the first interest rate rise in six years will depend on the state of the economy. BetaShares CEO David Bassanese believes that US economic data will improve, which would most likely result in a rate rise in either June or September.

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD LIFE PLC, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT