The increasing spread of Coronavirus: updated economic and investment market implications Key points While reported new coronavirus cases in China have slowed, the pickup in cases outside China has led to a renewed sharp fall in share markets and bond yields. Our base case is that the

Australian growth will be constrained but here’s nine reasons why recession is unlikely Key points: Australian growth is likely to be weak over the next year or so and this will prompt further monetary easing and fiscal stimulus. However, several positives suggest recession is unlikel

Australians can expect to pay more for petrol at the bowser as oil prices move higher in the short-term. Yet the price rises won’t force the Reserve Bank to hike rates as a significant acceleration in inflation is unlikely. Do I see the oil price continuing to surge higher? Short term

AMP Capital Chief Economist Shane Oliver says investors must get used to ongoing low returns on bank deposits, with the Reserve Bank (RBA) unlikely to raise official rates for some time despite calls for action. “We are of the view that rates will be on hold at least out to 2020,” he

In the rough and tumble of investment markets its very easy to get distracted: by talk of the next best thing that will make you rich, by the ever-present predictions of an imminent crash, by the worry list that constantly surrounds investment markets relating to growth, profits, inte

It’s nearly two years since the Reserve Bank of Australia last changed interest rates – when it cut rates to a record low of 1.5% in August 2016. That’s a record period of inaction – or boredom for those who like to see action on rates whether it’s up or down. Continue reading

The threat of a full-blown trade war has escalated in the last few weeks with the G7 meeting ending in disarray over US tariffs on imports of steel and aluminium from its allies and more importantly President Trump threatening tariffs on (so far at least) $US450bn of imports from Chin

Here’s my forecast: “The global economy is going to have a significant downturn and record levels of debt are going to make it worse.” Sound scary enough? Put it in the headline and I can be assured of lots of clicks! I might even be called a deep thinker! The problem is that there is

It seems there is constant hand wringing about the risks around the Chinese economy with the common concerns being around unbalanced growth, debt, the property market, the exchange rate and capital flows and a “hard landing”. This angst is understandable to some degree. Continue readi

So far this year geopolitical developments have been having a significant impact on investment markets. Most of these revolve in some way around President Trump and the US: with the threat of a trade war between the US and China. Continue reading