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Tag Archives: Australia New Zealand

Preparing for the Aftermath: China’s Airlines Try to Exit Crisis, Alitalia is Nationalized, Qantas Plans 21-Hour Direct Flights

The situation is very fluid. By MC01, a frequent commenter on WOLF STREET: On April 2, the Civil Aviation Authority of China (CAAC) held a press conference in Beijing to update the press about the aftermath of the Covid-19 lockdown. Internal air traffic more than doubled since the depth of the crisis but still operates at only 42% of the capacity it had before the crisis. The main drivers of this recovery have so far been migrant workers returning from their home provinces to their...

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Australia’s Construction Industry “On Brink of Collapse”: Started Going to Heck Last Year, Now Comes COVID-19

Bailouts, please! By Nick Corbishley, for WOLF STREET: Australia’s construction industry, which accounts for 13% of Australia’s GDP and one in ten jobs, is unsustainable and on the brink of collapse, according to Joe Barr, the CEO of John Holland, one of Australia’s biggest infrastructure firms and a wholly owned subsidiary of China Communications Construction Company (CCCC). “I won’t sugar coat it,” he told The Australian Financial Review. “Tier one contractors in Australia are not...

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Epic Construction Downturn Grips Australia

The bushfires were just the latest problem: The slump started well before them and also affects states unaffected by them. By Nick Corbishley, for WOLF STREET: Construction activity in Australia slumped by 3% quarter on quarter in the fourth quarter of 2019, the Australian Bureau of Statistics (ABS) reported this week. Compared to the same quarter of 2018, construction activity fell 7.4%. It was “a weak end to what was a weak year for the construction sector,” said Westpac senior...

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GM Better Figure Out How to Stop Shrinking, I Mean Globally & Pronto, Before It’s Too Late

GM tries to shrink itself out of trouble. And it shrinks where it wants to grow. But when will it stop before hitting zero? Ugly charts of GM’s global vehicle sales, by region. By Wolf Richter for WOLF STREET. GM announced this weekend that it would pull out of Australia, New Zealand, and Thailand, in line with its strategy to exit one market after another to shrink itself to higher profits, which has led to a stupendous downward spiral in vehicle sales. It already pulled out of...

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Australian Construction Giant CIMIC Writes Off Disastrous Arabian Adventure, After Being Bludgeoned over Opaque Debts

Shares plunged 20% on the spot, and are down 44% in nine months. By Nick Corbishley, for WOLF STREET: The shares of CIMIC, Australia’s largest construction company, plunged 20% on Thursday to a four-year low, wiping AU$2.2 billion (US$1.5 billion) off its market value, following news that the company was abandoning its Middle Eastern operations with the sale of its stake in BIC Contracting (BICC). The firm expects to suffer a AU$1.8 billion ($1.23 billion) charge-off after failing to...

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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...

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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...

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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...

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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,...

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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...

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