Thursday, 20 June 2019 Sydney

Invest In Australia News::

  • The budget didn't go down all that well with Australians

    • Australians don’t appear to have been all that impressed with the federal budget.
    • ANZ Bank’s consumer confidence index fell modestly, largely due to weaker readings on current family finances and household spending.
    • Australia’s federal election will be held at some point in May.

    If the Australian government was looking for the federal budget to boost confidence among Australians, it’ll be disappointing with new data released today.

  • Home loan lending rebounds following Australia's banking royal commission

    • Australian home loan lending bounced in February, coinciding with the conclusion of the Banking and Financial Services Royal Commission earlier in the month.
    • The value of new loans to both owner-occupiers and investors rose modestly from January.
  • Foreign investors are piling back into emerging markets in Asia, especially India

    • Foreign investors are piling back into emerging markets in Asia, especially India
  • Australian jobs ads are falling at the fastest pace in over 5 years

    • Australian job ads fell steeply again in March, according to data released by ANZ Bank.
    • In the past, falling job ads have usually signalled that unemployment is likely to increase in the period ahead.
    • While online job ads are falling quite quickly, Australia’s unemployment rate currently sits at 4.9%, the lowest level in eight years.
    • That outcome appears to be more consistent with total job vacancies w
  • The cost to rent a home in Sydney is falling, and increases in most other capital cities are slowing

    • The cost to rent a home in Australia rose marginally in the year to March.
    • Median capital city rental costs actually went backwards, driven largely by a decline in Sydney and further slowdown in Melbourne.
    • Rents in regional areas rose by 1.8% over the year in average weighted terms.
    • With national home prices going backwards, the modest increase in rents saw gross rental yields lift to 4.1% at the end of the March quarter.
  • App developer numbers in Australia have grown 20% in 2 years

    • App developer numbers grow 20.35% between 2017 – 2019, up from 117,000 to 136,000 on the back of broader increases in technology professionals.
    • Government policy and concentration in capital cities are a key source of growth, but more could be done.
    • Exports of computer and information services grew 30% in 2018.

    Australia’s burgeoning tech sector is continuing to grow, with almost 20,000 new app developers hitting the market between March 2017 and Januar

  • Australia coal posts biggest weekly drop in a decade amid weak demand

    Australian thermal coal prices this week registered their biggest weekly fall since the financial market turmoil of a decade ago as demand plunged with the end of winter and amid worries over the strength of the global economy.

    Coal prices for prompt loading at Australia's Newcastle terminal have lost almost 20 percent since last Friday, dropping to $72 per tonne, their lowest since May 2017, and marking the steepest weekly decline since the global financial crisis of 2008/2009.

    Coal has slumped by 40 percent from a mid-2018 peak of more than $120 per tonne.

  • Plans rejected for massive Apple store at Federation Square

    Heritage Victoria has rejected plans to partially demolish a part of Federation Square in Melbourne to make way for an Apple flagship store due to the area being culturally significant.

    The controversial idea was first announced in December 2017, with construction on the publicly-owned plot anticipated to commence in this year.

  • Facebook says it will block foreign-funded political ads to prevent Australian election interference

    Facebook is placing a temporary ban on political advertising bought by foreign entities ahead of the Australian federal election in May in an attempt to head off potential moves to create unrest and influence voters.

    Foreign entities are not prevented from buying political ads, but Australian law requires all election ads need to clearly identify their source. Facebook joins Twitter in banning foreign payments for political advertising for the election.

  • Australian home loan arrears are low but rising, and Moody's expects that trend will continue

    • The proportion of Australians falling behind on their home loan repayments rose across most parts of the country last year.
    • Arrears in New South Wales hit the highest level in five years, although they still remained below most other areas.
  • YouTube, Facebook, Twitter targeted by strict new social media laws in Australia. Here's what it means.

    • Parliament has approved new laws that will make it a crime to host or stream “abhorrent violent material”.
    • The laws were proposed by Prime Minister Scott Morrison on Saturday and some are concerned they’ve been rushed through.
    • Atlassian cofounder Scott Farquhar said the laws lack details and believes they will damage the Australian tech industry.
  • The Australian dollar's roller coaster ride continues - but it's not really going anywhere

    • The Australian dollar rallied hard on Wednesday, assisted by stronger domestic data from home and abroad and more positive chatter about trade negotiations between China and the United States.
    • The US dollar lost ground on the improvement in risk appetite as well as softer US economic data.
    • There’s not a lot on the economic calendar on Thursday.
  • Australian Federal Budget 2019: Winners and losers

    Here are the winners and losers of this year’s federal budget:


    Future generations – The budget forecasts a return to surplus of $7.1 billion by 2019-20, after more than a decade of deficits since the global financial crisis.

    Individual taxpayers – The budget promises a $302 billion package of personal tax cuts to be rolled out over the next decade.

  • Australia is setting up new secret 'sprint teams' to deal with foreign hackers

    The Australian government is investing millions in cyber security as part of an effort to keep foreign adversaries out of its networks and prevent them from meddling in future elections.

    Part of the investment will see new so-called “sprint teams” established to protect the nation’s networks. It is unclear what the government means by the term “sprint team”. Business Insider Australia has reached out to Australian Cyber Security Centre for clarity.


  • Government pledges $19.5 million over four years to lift-off Australia's space program

    The Morrison government on Tuesday night pledged $19.5 million over four years to expand its emerging domestic space industry and help triple the size of the Australian space sector.

    The funding is part of the government’s push to back “industries of the future.”

    Karen Andrews, Minister for Industry, Science and Technology, said the subsidies will help “support the Coalition’s plan to help create 1.25 million more jobs over the next five years.”

  • Australians are suddenly feeling a lot more confident about the economy

    • Australians are suddenly feeling a lot more confident about the economy, according to the latest ANZ-Roy Morgan Consumer Confidence Index.
    • Confidence is now higher than average, perhaps helped by hopes for additional tax cuts in the federal budget.
    • Sentiment levels softened in the second half of last year, coinciding with a slowdown in household spending over the same period.

    Australians are suddenly feeling a lot more confident about the economy, accor

  • In unsettling news, Australian online retail sales have suddenly plunged

    • Australian online sales tumbled in February, according to analysis of transactions processed by the NAB.
    • The monthly decline was the sharpest since the data series began in early 2016.
  • Australian unit approvals surge but few think the bounce will last

    • Australian building approvals surged by the most in over five years in February.
    • Total approvals to build attached dwellings jumped by a mammoth 64.6%.
  • The Australian dollar has jumped out of the blocks to start the new trading week

    • The Australian dollar has jumped out of the blocks in early trade on Monday, supported by stronger-than-expected Chinese economic data released over the weekend.
    • Renewed optimism over US-Sino trade talks helped to lift investor sentiment on Friday.
    • There’s a raft of economic data releases scheduled both at home and abroad on Monday.

    The Australian dollar has jumped out of the blocks upon the resumption of trade on Monday, supported by better-than-expect

  • Iron ore prices surge on renewed uncertainty over Brazilian and Australian supply

    • Iron ore spot markets rose strongly across the board on Friday.
    • Uncertainty over supply disruptions in Brazil and Australia, along with firmer steel prices, likely explain the size of the gains recorded during the session.
    • China’s official manufacturing and non-manufacturing PMIs both improved in March compared to the levels reported in February.
    • The Caixin-IHS Markit China manufacturing PMI report for March will be released on Monday.<
  • Consultation process for unfair contract terms must listen to small business

    Consultations on changes to legislation on unfair contract terms (UCT) for small businesses must adequately consult and take into account the views of the small business sector and the regulators, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said today.

    “We welcome the proposed UCT changes by the Coalition and expect the Regulation Impact Statement process to involve proper consultation and engagement with the sector and not just the big end of town which has a vested interest in watering it down,” Ms Carnell said.

  • Amazon is struggling to compete on price in Australia, says Morgan Stanley analyst

    • Morgan Stanley analyst Tom Kierath thinks Amazon is struggling to beat local retailers on price in Australia.
    • The ecommerce giant is competitive when it stocks the item in one of its Australian warehouses, but it often has to ship items in from the US.
    • Retailers in Australia have also been relatively reluctant to sell their products on Amazon, according to Kierath.

    There’s no shortage of doom and gloom in Australia’s retailing sector righ

  • If you're wondering where the next financial crisis may hit, you may want to listen to Cassandra

    • Nomura has created a model known as “Cassandra” that has reliably signalled at least two-thirds of the past 50 financial crises.
    • Right now, Cassandra is warning about a potential financial crisis in Hong Kong in the coming years.
    • China’s risk is also elevated, although it’s fallen in recent quarters. Turkey is also on the radar.
  • Australian housing credit growth hits record lows, pointing to further price falls ahead

    • Australian housing credit grew by 4.19% in the year to February, the weakest level on record.
    • Credit growth for owner-occupiers slipped to 5.91%, the lowest level since August 2015. Investor credit grew by only 0.85% over the same period.