Census shows how mining boom is reshaping Australia. Liberal senator Mary Jo Fisher resigns. David Ramli.
Lift in tax-free threshold poses new problems for working women forking out for childcare. FAIRFAX. Retail giants face more ACCC scrutiny. US Fed extends Operation Twist. Chairman Ben Bernanke said if the US economic recovery didn’t show “sustained improvement in the labour market” the US Federal Reserve was prepared to take “additional action”.
AFP Ben Woodhead The US Federal Reserve has extended its selling of short-term bonds – a plan dubbed Operation Twist – in a bid to bolster the United States’ slowing economic recovery. Markets Today. Who Destroyed The Middle Class? (Part 1) “Over the last thirty years, the United States has been taken over by an amoral financial oligarchy, and the American dream of opportunity, education, and upward mobility is now largely confined to the top few percent of the population.
Federal policy is increasingly dictated by the wealthy, by the financial sector, and by powerful (though sometimes badly mismanaged) industries such as telecommunications, health care, automobiles, and energy. These policies are implemented and praised by these groups’ willing servants, namely the increasingly bought-and-paid-for leadership of America’s political parties, academia, and lobbying industry.” – Charles Ferguson – Predator Nation The Federal Reserve released its Survey of Consumer Finances last week. It’s a fact filled 80 page report they issue every three years to provide a financial snapshot of American households.
The inescapable trilemma of the world economy. Once more up to the brink, or should that be over the precipice? It’s getting pretty exhausting living inside the Eurozone.
Spanish bank bailout, but Italy no worries: Alan Kohler. Spain is naturally the focus of all attention at the moment following the €100 billion bank bailout over the weekend, but the bigger problem for Europe is Italy, and it has been since the euro began.
Like Spain, Italy is now in a fully fledged debt trap, where economic growth is less than the national cost of capital. Yes, this time it’s urgent Mr president. Moody’s downgrades global banks. Limit to what central banks can do. Philip Baker Whenever a group of central banks makes it clear they stand ready to pump billions of dollars of liquidity into the banking system, it is immediately applauded by investors.
But there is only so much central banks can do. For sure they can offset any disruptions to the payments and settlements system, and help iron out dysfunctional markets. But governments are the ones with the real power to set the framework for a flourishing capital market. Indeed, as the US Federal Open Market Committee decides whether to announce a new round of stimulus, it’s relevant to remember chairman Ben Bernanke’s recent comments. Dr Bernanke said further Fed action could boost growth but might have “diminishing returns”, as interest rates are already at record lows. He also thinks politicians can do more to improve the performance of the struggling American economy. Europe’s capital flows get dangerous. Household conservatism may hurt growth. Things for investors to worry about. ASX faces battles on multiple fronts.
Foreign Australian bond holdings reach record. Most people ignorant of superannuation overhaul. Regionals thrive on knowing their turf. BoQ finds tilting at big banks comes naturally to the nimble. RBS warns on Suncorp non-core portfolio. Regional banks hit by higher funding costs. Banks’ war for deposits easing. Bank term deposit rates way down. Bank battle of the apps hots up. Paul Smith Thumbs up for SMS ...
St George Bank’s Travis Tyler and Dhiren Kulkarni. Photo: Nic Walker St George Bank will launch a mobile payments feature, which would allow customers to send money via SMS, in another sign that the major banks are getting on the front foot as competition increases among banks and global technology players for future banking customers. The bank will this week announce the service called Pay To Mobile, which would pit it directly against Commonwealth Bank of Australia’s popular Kaching application, and Australia and New Zealand Banking Group’s goMoney. Unlike CBA’s high-profile rival, it will not yet offer Facebook payments or tap and pay transactions via near- field communication chips, but it will be available to customers on a wider range of mobile devices.
The app will be available across iPhone, Android, BlackBerry and Microsoft Windows Phone handsets. Marketing departments the new drivers of IT spend. Brian Corrigan Miners and major consumer industries are providing the greatest impetus for local tech spending.
That’s despite the sense of caution resulting from global economic fears, IBM Australia managing director, Andrew Stevens, has said. Speaking to The Australian Financial Review, Mr Stevens said mining and resources companies like Impex, QGC and Chevron were investing heavily because those companies had established timetables for first delivery and already had contracted sales. Too many banks spoil the books. Australia has too many investment banks, according to Macquarie Group deputy managing director Greg Ward.
Photo: Michel O’Sullivan John Kehoe Macquarie Group’s deputy managing director, Greg Ward, says there are too many investment banks in Australia and some of Macquarie’s foreign competitors may be unprofitable. Investment bank revenue in Australia is under pressure because of the limited number of capital raisings, share sales and takeovers this year, stemming from uncertainty about global economic conditions.
RBA opts to revisit surcharges. Shares are cheap but rise is not assured. Tension likely to continue apace. Beazley looks for bigger insurance presence in Australia.