1. The Australian economy is on shakey ground and even RBA governor Glenn Stevens admits it. In a roundabout way, though, “observing” that it wouldn’t hurt for some other sectors of the economy to channel the “animal spirits” driving the housing market. Stevens said it wasn’t good enough for businesses to think about investing – they actually have to do it, and that the RBA didn’t expect consumption to grow a whole lot faster than incomes. All of which means don’t expect a rate rise any time soon.
2. The Aussie dollar didn’t seem to notice all this, however. It’s at 0.8727, confounding the RBA’s obvious disquiet.
3. And on the ASX, after another down day on the physical yesterday, futures traders took the December SPI 200 up 16 points overnight to 5,429. Our market is marching to the beat of its own – bank and miner induced – drum, so the battle will be on between offshore positivity with a huge crash in iron ore.
4. About that crash. It was a beauty, $3 overnight. While the November delivery of the 62% Fe, CFR China Swap Future was down 64 cents a tonne to $74.91, the December 2014 contract fell $3.02 to $70.94. And the December 2016 contract dipped $5.88 a tonne to $64.50 – that’s close to Fortecue’s cost of production. That’s an ouch for the smaller miners, and a sharp intake of breath for Joe Hockey’s budget bottom line.
5. Turning to Asia, it was all about Japan for the second day in a row as Prime Minister Abe called a speculative early election and delayed the sales tax increase for 18 months as he seeks to hold onto power. Parliament is to be dissolved at the end of this week which is less than halfway through Abe’s four-year term. The move highlights how bad things might be getting in Japan and the fact that Abe wants to get ahead of the crunch. But here’s BI US’s Mike Bird on how the West can only dream of what it means to “fail” in Japan.
6. Technology made the world a better place last night, in three ways. Comet-chaser Rosetta sent back samples from 67P that all but proved life could exist on other planets. Samsung said it really would release this bendy phone next year:
7. Uber is on the nose. Unfortunately, because it’s an amazing service. But the ride-sharing juggernaut is making headlines for all the wrong reasons and really needs to get to work on its public image, stat. Most recently, SVP Emil Michael mouthed off at a dinner in New York, suggesting Uber should spend a “million dollars”, researching the personal lives of journalists critical of the company. Buzzfeed editor Ben Smith wrote that the general manager of Uber NYC accessed the Uber profile of one of their reporters, showing where she’d been and when. All the privacy alarm bells are now ringing.
8. All the air traffic at a glance. Here’s an amazing visualisation of all the Transatlantic traffic over a 24 hour period. That’s 2,524 flights crossing the North Atlantic, in one day, and it’s spectacular.
9. The trouble with golf. There was a time when it seemed every ambitious wannabe exec spent their first months’ salary on lessons and the latest Pings in case they got the call-up for a round with the boss. These days it’s all lycra and BPMs. But if your CEO still plays golf, here’s the stats you might not want to see – FORE! An analysis of CEO shirking, is the brilliantly titled report that identifies a link between golfing CEOs and their underperforming companies. Or for an even bigger laugh, check out how little time Tiger Woods has for people who don’t take small ball – or Tiger Woods – seriously enough. Prat.
10. The Socceroos are struggling. Ange Postecoglou’s record as national coach is looking pretty dire after his team slipped to it eighth loss in 12 matches. Last night it was not their worst performance, but the Socceroos still needed rickety warhorse Tim Cahill to mark down its only goal in a 2-1 loss to Japan. News Corp has all the player ratings here, along with a new Australian record for autoplay videos in one post.
Have a great day. I’m on Twitter, occasionally.
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