Capital Economics becomes fourth forecaster to call for RBA rate cut

Capital Economics becomes fourth forecaster to call for RBA rate cut

"Our forecasts for GDP growth and inflation are more downbeat than the consensus. What's more, banks have raised mortgage rates in response to higher funding costs," Mr Thieliant wrote. "As growth weakens, the RBA may want to offset higher bank lending rates by reducing the cash rate. "We now expect the RBA to cut interest…
Power couple David and Libbie Mugrabi’s divorce puts spotlight on their wealth

Power couple David and Libbie Mugrabi’s divorce puts spotlight on their wealth

"Nothing happened, for sure," the woman said. "I have no interest in your husband." "You were naked on my couch," Libbie Mugrabi said. "How is that appropriate?" Within two weeks, the incident had metastasized into one of the most salacious New York society divorces in recent memory. "Art billionaire's ex caught him naked with another…
Telco sector faces its moment of truth in 2019

Telco sector faces its moment of truth in 2019

Capital expenditure in the sector in 2019 is likely to be more than $10.5 billion – the highest since the 3G capital expenditure boom more than a decade ago. Telstra said it would spend about $4.4 billion in the year to June 2019, and analysts expect it to spend at least another $2 billion in…
Little-known Panther Trust slays fundie competition in 2018 Mercer survey

Little-known Panther Trust slays fundie competition in 2018 Mercer survey

Telstra shares advanced 27 per cent between their 2018 low and high. But that was not the only call the actuary-turned-investor got right. Mr Woods also bought Asaleo Care at 73¢, capturing the benefit of its share price recovery after Asaleo found a buyer for the Australian Sorbent tissue and Handee paper towel businesses. 'A…
Brett Himbury’s IFM pitch to Washington’s doubters: We’re not Wall Street

Brett Himbury’s IFM pitch to Washington’s doubters: We’re not Wall Street

"Core infrastructure is not private equity; core infrastructure provides a vital long-term community service; it helps people get to work quicker; it helps people recover from health issues; it helps people get educated." IFM management's latest tour of the US, including visits by Mr Himbury to Washington DC last week, comes as hopes are starting…
Why investors should fear ‘fallen angels’

Why investors should fear ‘fallen angels’

"US junk bond issuance has been prolific, and the quality has been poor," Gundlach said. "Many issues have been floated with no covenants [legal agreements regarding issuer behaviour]." But Gundlach also pointed to the huge growth in the so-called investment-grade section of the market — those bonds that boast a credit rating of BBB-minus or…
Huawei’s independence claims undermined by China

Huawei’s independence claims undermined by China

That includes insisting Huawei would never do anything to harm the interests of its customers, as evidenced by its behaviour in the 170 countries in which it operates. But the much greater evidentiary problem for Huawei is that it is inextricably linked with the views on the present and future behaviour of the Chinese government.…
Strong social outcomes can be just as important as avoiding losers

Strong social outcomes can be just as important as avoiding losers

So how can investors identify social risks and opportunities? For a retailer with overseas manufacturing, as an example, fund managers might meet with management and visit operations to understand how direct-sourcing relationships are managed, gaining comfort on supply-chain visibility and control. Is the retailer sourcing its products from sustainable factories with positive labour outcomes? We…
A hard Brexit will hurt Europe more than Britain

A hard Brexit will hurt Europe more than Britain

Hard exit wouldn't be too bad Anyway, let's talk about where the economics of Brexit seem to stand now. The long-run economics of Brexit still look mostly the same way they did when I and others began analyzing the prospect back in 2016. Exit from Europe's customs union would substantially raise transaction costs on roughly…
Keating government adviser Vince FitzGerald slams Labor’s ‘horrible’ dividend tax

Keating government adviser Vince FitzGerald slams Labor’s ‘horrible’ dividend tax

"It will be yet another horrible complication to how super is taxed." If Labor wins the election, as opinion polls suggest, it plans to stop investors who pay no or little income tax – except pensioners – claiming tax refunds for excess imputation credits for dividends, to save the federal budget about $5 billion a…

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