China cuts rates as lockdowns smash property sales, retail
Weak economic activity in April has compounded warnings China will never regain its pre-pandemic strength.
Super plan could lift Sydney house prices by $45,000
Economists warn that leveraging extra cash from pension balances into housing will push up mortgage debt – and the market.
House price ‘bump’ will be offset by supply measures: PM
Prime Minister Scott Morrison says he stands with homebuyers, not ‘big-union super funds’.
- Analysis
- Federal election
House prices will fall 10pc before PM’s super plan sends them up
Allowing first home buyers to tap their superannuation will eventually push up house prices, but only after the RBA’s interest rate rises cut property prices by at least 10 per cent, writes John Kehoe.
The high cost of homelessness revealed in new data
A large public data project has found the average cost of supporting homeless people was $186,000 over six years and pointed to early interventions that could significantly reduce homelessness.
PwC sued over advice on $88m sale to Retail Food Group
Kyriakos Skoullos alleges advice on sale of his business, Hudson Pacific, lost him millions when the value of the shares he received on the sale plunged nearly 99 per cent.
Crypto investor calls for central banks to protect stablecoin reserves
The spectacular meltdown of terraUSD has accelerated calls for central bank-backed coins, including from Heath Behncke of Holon Global Investments.
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MONDAY MARKETS
- Opinion
- Chanticleer
Why buy-the-dip investors should be careful
Forget the crypto crash, the most worrying signal from financial markets last week came from the stock widely considered among the safest in the world.
TerraUSD rout is crypto’s ‘Lehman Brothers moment’
High-profile Aussie investor Mark Carnegie has described last week’s collapse of the terraUSD stablecoin and subsequent carnage in cryptocurrencies as a “Lehman Brothers moment”.
Shares tipped for strong open, crypto stabilises
Australian futures are 0.8pc higher as investors eye crucial wages and employment data, election deadlock risk, rising oil prices, and wild crypto markets.
Fund manager turns board whispering into stellar gains
Working closely with boards has helped Tanarra Capital’s Long Term Value fund realise sizeable returns, explains portfolio manager Vidhur Rangaswamy.
- Opinion
- Australian economy
Warped policy priorities mask hidden costs
Climate change linked to support for fossil fuels and housing inequality are emblematic of the policy challenges neither major party wishes to tackle.
Companies
ATO targets work expenses, crypto gains
People who simultaneously claim home office expenses and travel costs such as tolls will come to the attention of the Tax Office, which is also warning about the declaration of crypto gains.
Pacific National taken to court over train crash report
The federal government is trying to get the freight rail group to hand over information from an investigation into a fatal train crash in Western Australia.
Cooper Energy gets earnings boost from gas crunch
Cooper Energy says it expects earnings during the 2022 financial year to total between $57 million and $68 million, up from its earlier estimate of $53 million-$63 million.
FSC calls for ban on scam ads on Facebook, Google
As scammers get more sophisticated targeting consumers on digital platforms, the Financial Services Council has called for Facebook and Google to do more.
- Opinion
- Chanticleer
Classic PE pitch could end Brambles’ lost decade
Brambles has disappointed investors for a decade, and many shareholders will see a potential takeover from CVC as a chance to finally extract some value.
Battered Chrysos in partial rebound on $109m in contracts
The gold mining testing disrupter had a partial ASX recovery with five new contracts for its big machines, after a torrid debut on May 6.
Brambles parries CVC with ‘options’ as shares surge
The logistics giant is signalling to any other potential buyers to declare their hand now, as the private equity group circles.
Companies in the News
Search companies
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Markets
China’s economy shrinks in April; Citi cuts Wesfarmers to sell
Chinese retail sales and industrial production plunge in April. Shanghai to begin reopening. Shares pare gains, miners turn lower. Bitcoin rebounds. Follow the latest here.
Crypto investor calls for central banks to protect stablecoin reserves
The spectacular meltdown of terraUSD has accelerated calls for central bank-backed coins, including from Heath Behncke of Holon Global Investments.
Bonds regain defensive appeal despite vicious tumble
Investors tip-toe into government bonds as central banks tighten monetary policy to combat inflation, squeezing yields higher.
Threat of slowing profit growth to weigh on US shares
The S&P 500 could fall a further 15 per cent as markets price in the mounting risks facing company earnings, Morgan Stanley warned.
- Analysis
- Cryptocurrencies
Inside the week that shook crypto to its core
The failure of once-hyped stablecoin luna has been described as “one of the greatest catastrophes crypto has ever seen”, sparking serious questions over the functioning of the entire crypto market.
Opinion
Housing opens up a philosophical divide
The Coalition and Labor both claim to be helping first home buyers with government assistance. Neither wants to acknowledge the economic reality that rising interest rates mean house prices are likely to go down rather than up, at least in the short term.
Columnist
Australia must join the global fight for talent
Migration is a wellspring of economic growth for Australia. But just reopening the door may not be enough any more.
Editorial
Reckless budget populism must stop
As they ponder who should govern the nation, Australians should demand budget repair, instead of leaving public finances dangerously exposed.
Editorial
Boosting productivity means everything for higher wages
The political argy-bargy over lifting the minimum wage showed what’s missing from the election campaign is any meaningful national productivity strategy.
Economics professor
The crypto shake-out shows boring is back
True believers say crypto is a new global currency. Give it time, they say. Well, it has had time now, more than a decade in fact, and I still can’t use it to buy a coffee or any other daily items for that matter.
Contributor
AUKUS limits Labor’s room to move on China reset
Anthony Albanese’s freedom to restore the relationship will be constrained by the bipartisan nuclear submarine deal that has banked the strategic house on American resolve in resisting Beijing.
Historian
Politics
Zali Steggall unloads on Scott Morrison in debate
Teal independent member for Warringah Zali Steggall unloaded on Prime Minister Scott Morrison at a debate in Canberra, saying she questioned his trustworthiness.
PM’s super property pitch makes more of a difference in cheaper cities
The proposal will give a modest boost for young singles in the most expensive cities. But couples outside Sydney and Melbourne will derive a greater benefit.
Crossbench quiet on hung parliament positions except Bandt
Independent MP Zali Steggall is opposed to any “secret deal” to gain power in parliament; Morrison dismisses criticism about the Coalition’s new housing despite frontbencher Jane Hume conceding it would lead to higher prices. Follow the latest here.
‘Rivers of gold’: McGowan to demand more cash from Albanese
Despite his $5.7 billion state budget surplus, the West Australian Premier says he will push for more federal funding after Saturday’s election.
- Analysis
- Climate policy
Neither party is up for the job of dealing with climate change
Even with a plan that would work, it will take many decades to decarbonise Australia. But we don’t have such a plan, warns Adrian Blundell-Wignall.
SPONSORED
World
- Analysis
- Russia-Ukraine war
In rebirth for NATO, Europe unites in face of Putin’s ambition
In a new Europe, there is no more in-between space. Countries are either protected by NATO or they are on their own against Russia.
Kim blast health officials as N Korean outbreak worsens
Failing to slow the virus could have dire consequences for North Korea, considering its broken health care system and that its 26 million people are believed to be unvaccinated.
New Zealand to speed EV adoption to cut emissions
Despite contributing only a tiny fraction to global greenhouse gas emissions, the government says New Zealand needs to play its part in limiting world temperature rise to 1.5 degrees Celsius.
NATO leaders to speed up Finland and Sweden membership
Sweden and Finland’s bids to join the security organisation will extend the alliance’s borders with Russia and change the geopolitics of Europe.
- Analysis
- World elections
Blow for Scholz as party loses key German state poll
The German chancellor’s party has lost an election in the country’s most populous state, seen as a referendum on his response to the crisis in Ukraine.
Property
Couple buy a house that they sold eight years earlier
A tree change that had scratched its itch and intel from the pool guy that their home was back on the market prompted an unusual move.
Sentinel joins the Adelaide crowd with $25m office deal
Adelaide’s commercial property market is experiencing an upswing as major investors and fund managers chase better yields beyond the east coast capitals.
Alan Joyce just bought a $19m Mosman mansion
The 15-room residence is an impressive step up the Sydney property ladder from the Qantas boss’s eyrie in the Cove Apartments building at The Rocks.
Rubber hits the road as Kumho takes $37.5m facility in Marsden Park
Kumho Tyres has committed to a 10-year lease at Sydney Business Park in the city’s north-west.
- Opinion
- Chanticleer
Goodman’s ‘old heads’ are ready for rapid rise in rates
Rising rates won’t dent the demand Goodman Group is seeing, but it could put overleveraged rivals into trouble, Greg Goodman says.
Wealth
- Opinion
- Private equity
Why portfolios should include private equity
Retail investors need to be wary of traditional investments that are now riskier given the concentration in large-cap listed markets. As businesses evolve, so should portfolios.
China continues to offer huge investment opportunities
Beijing’s focus on ‘common prosperity’ is often wrongly portrayed in the West as some sort of attack on capitalism, when it is really just about sustainable and inclusive growth.
ATO turns screws on SMSF property developers avoiding GST
A recent court case involving a DIY super fund subdivision highlights the importance of ticking all the boxes.
Technology
Digital sneakers let you earn crypto while you walk
If you want to experience StepN, the latest app crypto investors are talking about, you have to be willing to fork out almost $1000 for a pair of digital sneakers.
Brace for sustained crypto bear market, experts warn
Investors are steeling themselves for a prolonged downturn in cryptocurrency prices, as higher interest rates and last week’s collapse of a widely used stablecoin rock confidence.
- Exclusive
- AI
Origin to use AI to encourage rooftop solar panel sales
Origin Energy has developed new software to use aerial photography and AI algorithms to tell home owners how much power they could generate with solar panels.
Work & Careers
- Opinion
- Jobs
Bonuses are outdated in the age of knowledge work
Paying people to meet targets is not always effective - and can even backfire.
BDO appoints former PwC executive as partner
Stefanie Merlino is now a partner in BDO’s people advisory business.
Life & Luxury
Why this exec enjoys spending his leisure time on a board
For Lenovo ANZ managing director Matt Codrington, “when I am on the waves, what seemed like problems no longer matter”.
This audio pioneer is set to transform the way you hear music
Kim Ryrie, the man who revolutionised the music-recording industry in 1979, has been fine-tuning a device that makes high-quality sound way more affordable.
Why I wrote a book about being stalked
Author Ellis Gunn thought she’d dealt with the trauma of being pursued by a stranger, until she sat down to write a book about homesickness.
Is fashion week about selling clothes? It depends who you ask
Fashion week is over for another year, and while it had its moments, the divide between commercialism and creativity was starker than ever.
Gregan says Rugby World Cup will ‘inspire’ a new generation
An expected windfall of up to $60 million from hosting the Rugby World Cup could help fix the game’s financial problems in Australia.
