Wednesday , January 22 2020
Home / Tag Archives: Australia New Zealand

Tag Archives: Australia New Zealand

Australia’s New-Vehicle Sales Drop to Lowest Since 2011

Holden sales collapse. “Tough Year for the Australian Economy.” By Wolf Richter for WOLF STREET. Australia is next as we’re tracking the decline in global new-vehicle sales that started in the US in 2017 and took on serious dimensions in 2018 with vehicles sales falling for the first time in modern China, the largest auto market in the world. New-vehicle sales in Australia fell 7.8% in 2019 to 1,062,867 units, the lowest since 2011, after having already fallen 3.0% in 2018, for a...

Read More »

Status of US Dollar as Global Reserve Currency v. Euro, Yen, Chinese Renminbi, & Others

Latest data is out. Folks who hoped the Renminbi would break the dollar hegemony have to be very patient. By Wolf Richter for WOLF STREET. The US economy and financial system – including being able to maintain and fund the gargantuan trade deficits and fiscal deficits – has become reliant on the dollar being the dominant global reserve currency. And the IMF just released its next installment on how this status has been changing. Total foreign exchange reserves in all currencies...

Read More »

Use of “Hidden Debt Loophole” Spreads Among Australian Corporations

Situation already so bad that hiding debt becomes a priority? By Nick Corbishley, for WOLF STREET: Australian engineering group UGL, which is working on large infrastructure projects such as Brisbane’s Cross River Rail and Melbourne’s Metro Trains, recently sent a letter to suppliers and sub-contractors informing them that as of October 15, they will be paid 65 days after the end of the month in which their invoices are issued. The company’s policy had been, until then, to settle...

Read More »

One of World’s Construction Giants Admits Using Risky Hidden-Debt Loophole “Across Group.” Australian Subsidiary Crushed

This “crack cocaine for CFOs” was also extensively used by Carillion until it collapsed. By Nick Corbishley, for WOLF STREET: The world’s seventh largest construction and services company (by sales), with subsidiaries around the globe, Grupo ACS, has revealed it is making extensive use of reverse factoring, a controversial financing technique that played a key role in the collapse of UK construction giant Carillion. In a conference call with analysts, ACS chairman, Florentino Perez,...

Read More »

THE WOLF STREET REPORT

Can Australia’s Housing Bust Morph into a Financial Crisis? As the housing bust in Australia progresses in its methodical manner, will it trigger a mortgage crisis that hits the big four banks, and the remainder of Australia’s financial system to the point where there’s a banking panic and a financial crisis in Australia? And what will this do to the global financial system? (12 minutes) Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally...

Read More »

Update on the Spreading Housing Bust in Australia, and Why it’s Happening

This bubble was not pricked by the central bank — on the contrary. Home prices in the metro area of Sydney, according to CoreLogic’s Home Value Index, fell 0.9% in March from February and 10.9% from March last year. Prices in the most expensive quarter of the housing market dropped 11.9% year-over-year. Since its peak in July 2017, the index has dropped 13.9%: For a while, there was a rumor that first-time buyers would save the market, and that this was visible because in the big...

Read More »

Risks of Financial Instability “Appear to Be Elevated But Contained”: Australia’s Central Bank on Housing Bust

Crackdown on lending shenanigans and bank misconduct plus an onslaught of new condos at worst possible time worry the RBA. The Reserve Bank of Australia has kept its policy rate at the historic low of 1.5% for the 31st month in a row, to do what it can to keep Australia’s housing bubble inflated. But with home prices spiraling down for other reasons, and with households being among the most indebted in the world, the banks are heavily exposed, and now the RBA is beginning to fret about...

Read More »

Home Prices in Sydney & Melbourne Spiral Down, Bust Spreads. IMF to Regulators: “Reinforce Financial Crisis Management”

Bitter irony: Government told first-time buyers 5 months before bust began to “get into the Sydney housing market”; once in, “you’re pretty well set for life.” “Nothing goes to heck in a straight line” because there is always a bounce, sooner or later – that’s my story and I’m sticking to it, but it does get tested from time to time, including in Australia’s housing bust. Across the metro area of Sydney, prices of all types of homes combined, according to CoreLogic’s Home Value Index,...

Read More »

Forced End of “Ponzi-Like Leverage” & “Fraudulent Lending” Turns Australia’s House Price Bubble into “Property Bloodbath”

What banks & housing markets in Sydney and Melbourne are facing in 2019. As investors are fleeing Australia’s housing bust, sales of new houses have plunged to record lows, and home prices in the Sydney and Melbourne metros have dropped 12% and 9% from their respective peaks in mid and late 2017. Combined, the two metros account for about two-thirds of residential property value in Australia. A two-decade-long housing boom, interrupted by only a few minor dips, led to two of the...

Read More »

I’m in Awe of How Fast the Housing Markets in Sydney & Melbourne Are Coming Unglued

The largest three-months fall “since at least the 80’s”: CoreLogic “Can we still describe this as an orderly slowdown in housing conditions?” mused CoreLogic Asia Pacific’s head of research Tim Lawless about the Australian housing market today. Over the last three months, the index for Sydney dropped 4.5%, and the index for Melbourne 4.0%, the “largest rolling quarterly fall since at least the 80’s.” Across the metro area of Sydney, prices of all types of homes combined, according...

Read More »