Australia Archives - Page 7 of 12

Potential Consequences Australia Could Face in the Wake of Higher U.S. Interest Rates

On September 17, the Federal Open Market Committee will announce its decision on monetary policy in one of the most keenly watched US Fed policy meetings of recent times.

Since reaching zero (officially 0%-0.25%) in December 2008, the federal funds rate (the US equivalent of the RBA cash rate) has remained unchanged for 53 consecutive meetings. Many market participants are tipping a September rate rise, but the decision appears to be finely poised. Even Australian Treasurer Joe Hockey is hoping for decisive action to normalise US interest rates.

Australian Mining and the “Diseconomies of Scale”

Even for mining companies that are used to rapid change in the business environment, the past 12 years have been nothing short of extraordinary. A long period of low commodity prices made executives wary of expansion to meet demand.

E(X)tolling the Virtues of XBRL Down Under

As we come to the end of another financial year-end reporting season and await the deluge of impenetrable financial reports, we can only lament that another year has passed and an important reporting mechanism widely used in many international exchanges, is still not with us.

In Australia, financial statement information continues to users in detailed and complex reports that are not user friendly. These may now be electronic in pdf format, but the problem is that the data is not extractable electronically, accurately, and efficiently. There is a solution passing us by.

Reassessing Critical Asset Sales in Australia

The change to foreign ownership of Australian companies and critical infrastructure continues with the takeover offer for rail and ports operator Asciano from Brookfield Infrastructure Partners, a Bermuda-based company listed on the New York and Toronto stock exchanges.

The offer, which values Asciano at US$9 billion, is a part cash (75%) and part scrip (25%) bid. While it has the blessing of the Asciano board, the offer is yet to get approval by both the Australian Competition and Consumer Commission and Foreign Investment Review Board.

Measuring the Gig Economy Down Under

When policy think tank the American Action Forum tried to put a number on the gig economy last month, it triggered considerable debate on just how much the sector is really contributing to jobs growth.

Workers in the “gig economy” are employed on a particular task or for a defined time, with little connection to their employer. Indeed, the concept of “employer” has little meaning to these workers since they are better regarded as self-employed selling a service in much the same way as a greengrocer sells apples.

Australia’s Yuan Worries

The decline in the yuan is not very large, and the way in which it happened is not very nefarious. The Chinese central bank normally intervenes heavily in the currency market and they have historically kept it closely linked to the US dollar while smoothing out day-to-day fluctuations.

Australia’s Joe Hockey Responds to the Criticism Surrounding Negative Gearing

Negative gearing is a very controversial issue. The latest round of debate stems from the Reserve Bank’s submission to the House of Representative Standing Committee on Economics regarding the enquiry into home ownership. The Bank believed that “there is a case for reviewing negative gearing.”

Treasurer Joe Hockey promptly responded to again rule out any change of the tax policy on negative gearing. In particular, reports show that he claimed that removing negative gearing would create “an exception to a standing rule in taxation law.”

Examining the Sustainability Efforts of Australia’s Biggest Banks

Australian companies will soon be publishing financial results, as well as information about sustainability efforts.

Corporate social responsibility of the big four banks – Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac is a continuing topic of debate following recent scandals and reports of unsustainable activities.

Yet according to ANZ chairman, David Gonski, Australians ought to “stop bashing the banks” for being large and profitable.

Turning Australia into a Lean, Mean, Resource Machine

Good times for Australia kept rolling whilst prices and demand for our resources were high. However, boom-time is on the wane, manufacturing is squeezed, and it is time for a serious where-to-from-here conversation about the nation’s economy.

Australia’s Port Privatization Plan is a Mess

Recent plans to privatise a number of Australian ports have become very messy. In Victoria, both sides of government were committed to privatising the Port of Melbourne Corporation (PoMC), intending to use the proceeds to remove a number of level crossings throughout the state, and enabling it to qualify for the Treasurer Joe Hockey’s 15% recycling assets contribution scheme.