The latest edition of our finance and property news digest with a distinctively Australian flavour.
In another wild week, where FED speak on one hand, and hopium on the other drove markets all over the show, the Dow ended higher on Friday as investors weighed up further hawkish remarks from Federal Reserve officials, and the latest wave of quarterly results from retailers. Looking to the shortened trading week ahead, the Fed’s minutes from its October meeting will garner investor attention for clues on the central bank’s thinking on monetary policy.
Chief Hawk, St. Louis Fed President Bullard said this week that “Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation,” in an analysis by the St. Louis Fed that debated the appropriate rate regime for the central bank after six increases since March.
CONTENTS 0:00 Introduction 0:40 US Monetary Policy
4:15 US Markets
6:00 Oil 12:22 Gold 15:20 Europe and UK
18:00 ECB Monetary Policy
21:10 Asia 25:02 Australia
27:30 Crypto Winter 28:10 Close
Go to the Walk The World Universe at https://walktheworld.com.au/
A quick market update and a deep dive in the UK’s budget announcement, which was as political as it gets! The headline is households will go backwards, as unemployment rises, and a 2-year recession is likely. Worse, personal income tax bands are frozen, so the total tax take will be bigger than ever!
Investment allowances have been cut, and the future Government spending cuts have been pushed out beyond the next election.
The cost of debt to the Government rises.
This scenario is one we should expect to see playing out in other economies too. Living standards will drop.
Today’s post is brought to you by Ribbon Property Consultants.
Digital Finance Analytics (DFA) Blog
The Biggest Drop In Living Standards In Many Decades... [Podcast]
We (Dale Webster and I) have written to the Senate Standing Committee on Regional and Rural Affairs and Transport about the economic fallout from the removal of in person banking services across Australia. Today I discuss this with Robbie Barwick from The Australian Citizens Party and the need to lobby Senate members on this important issue.
If you care about the economic future of our regional towns and suburbs, then please contact your local Senators and tell them that they should support the initiative, ideally over the next few days, so as to create maximum impact in the final sitting weeks of the year.
This is an edited version of a live discussion about the current FTX debacle, the trajectory of Crypto, and the rise of Central Bank Digital Currencies. Is the future one of “harder, faster safer money”?
My latest chat with our Property Insider, as prices in NSW get a kick-up from the stamp duty changes, China stops more migration and auctions are not what they seem.
I caught up with Senator Rennick (LNP Queensland) after his recent outings in Senate Estimates and his speech on Superannuation. We explored the broader economic issues which we face, and why we need some different approaches from our regulators and the RBA.
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Digital Finance Analytics (DFA) Blog
Getting Better Economic Outcomes: With Senator Gerard Rennick [Podcast]
Global stocks rallied on Friday for a second day on hopes cooler U.S. inflation would lead to less aggressive interest rate hikes by the Federal Reserve, an outlook that pushed the dollar to its biggest two-day drop in 13 years.
On Wall Street, stocks rose to add to the prior day’s biggest daily percentage gains for the S&P 500 and Nasdaq in more than 2-1/2 years after year-over-year inflation in October fell below 8% for the first time in eight months.
“We got a potential view that the Fed may not need to get as horrible as we thought over the last couple of weeks,” Marvin Loh, senior global macro strategist at State Street in Boston, said about the market’s exuberance. “Risk could be stabilizing here.” The Fed has no choice but to press on, but if inflation is no longer rising, that indicates the end of more extensive tightening may be near, Loh said.
The Dow Jones Industrial Average rose 0.1%, the S&P 500 gained 0.92% and the Nasdaq Composite advanced 1.88%. Energy stocks rose more than 3%, buoyed by rising oil prices as China eased some of its Covid-19 restrictions, stoking hopes for a jump in demand.
The banks rose, with ANZ up 1.48%, CBA up 1.7%, NAB up 1.15% and Westpac up 1.99%. Macquarie was up 5.6%. So old world financials did well.
Where as in Crypto Pain land. Sam Bankman-Fried’s digital-asset empire filed for Chapter 11 bankruptcy, capping the downfall of one of crypto’s wealthiest and most influential moguls and his collection of high-flying ventures including exchanges and a massive trading operation.
At his peak, crypto mogul Sam Bankman-Fried was worth $26 billion. At the start of this week, he still had $16 billion. Following the collapse of his crypto exchange FTX and his Alameda Research trading house, his assets in the Bahamas have been frozen by the authorities, he’s being investigated by the US Securities and Exchange Commission for potential violations of securities rules, and regulators in Cyprus are poised to suspend his license to operate in Europe. By Thursday, the Bloomberg Billionaires Index was valuing FTX’s US business at $1, down from $8 billion in January. That’s not a typo. One dollar.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Hope Springs Eternal (Minus Crypto) For Now... [Podcast]
My latest chat with Journalist Tarric Brooker, as we answer questions relating to inflation, on the day after the latest data from the US was lower than expected. So, we examine why that is, and what the implications may be.
Sides available here: https://avidcom.substack.com/p/charts-that-matter-11th-november
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Cutting Through The Bull...! With Tarric Brooker [Podcast]
This is an edited edition of a live discussion about the current state of the financial system and whether it’s fit for purpose featuring both John Adams, and also Robbie Barwick from the Citizens Party. https://citizensparty.org.au/ Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay Financial System On The Edge With Robbie Barwick AND John Adams [Podcast]
