The Economy

 

What's a AAA credit rating and does it matter?

Jonathan Shapiro and Clancy Yeates 6:18 PM   What is this rating, where does it come from and does it matter? Your AAA-rating questions answered.

Comments 66

Ratings agency puts Parliament on notice

Standard and Poor's says the time to act is now or suffer the consequences.

Nicole Hasham 4:47 PM   The next Australian parliament has been put on notice: get your act together and fix the budget now, or expect a serious hit to the nation's credit status.

Australia cuts iron ore price forecasts

The department now sees iron ore averaging $US44.20 a tonne this year versus a $US45 forecast in March and a December ...

11:04 AM   Australia on Friday cut its 2016 price forecast for the country's biggest export earner iron ore by nearly 2 per cent to well under current prices, citing concerns over slowing growth in demand and said it sees little change in 2017.

Opinion

Get a grip, it's politics as usual

Michael Pascoe

Michael Pascoe 9:41 AM   The election result isn't the equivalent of an Antipodean Brexit or a Trump. Heck, we haven't even changed our PM for 10 months. Well, not yet anyway.

Comments 9

Comment

The downgrade that will make mortgages cheaper

Standard and Poor's has little patience with the forecasts of Malcolm Turnbull's first budget.

Peter Martin   Standard & Poor's has just made your mortgage cheaper.

Comments 4

Federal election 2016: Standard and Poor's puts Australia's AAA credit rating on negative outlook

Scott Morrison says Standard & Poor's outlook reaffirms his government's approach to budget restraint.

Nicole Hasham   Ratings agency Standard & Poor's has cut the outlook on Australia's coveted AAA credit rating to negative after an unresolved federal election result and high levels of debt.

Housing boom fuels construction bounce

Housing Industry Association chief economist Harley Dale said new residential construction remained the powerhouse of ...

Australia's hot property market has driven the fastest pace of building activity growth in 10 months.

Leaving the Leavers: Poles mull returning home as Brexit hurts UK

Poland beckons

Stephanie Baker   As the Tories talk tough, UK employers who rely on immigrant workers are rushing to reassure them they're wanted and needed, urging them to sit tight while the UK government negotiates a new relationship with the EU.

Chinese tourist boom hits record high

Chinese tourists shopping Australia.

The number of Chinese tourists venturing Down Under has hit an all time high, while migration levels have slumped to a nine-year low.

Systems go: RBA leaning toward a cut

Peter Martin dinkus

Peter Martin   The Reserve Bank board's next meeting, in four weeks time, will be live, meaning it'll do more than simply review the state of the economy.

Comments 10

Retail sales weak despite May rate cut

Sales at department stores were flat, and turnover in household goods and clothing and footwear dropped more than 1 per ...

Mark Mulligan   The value of retail sales across Australia rose just 0.2 per cent in May, seasonally adjusted, despite the RBA's rate cut that month.

Comments 5

The real winners of the Mediscare campaign

Ross Gittins

Ross Gittins   The success of Labor's Mediscare in this election is worrying - but not for the reason you may imagine.

Comments 196

RBA holds rates, hints at cuts ahead

Despite a sharp fall overnight, the Aussie looks resilient regardless of the RBA's next move, say some.

Mark Mulligan   The RBA has left the cash rate on hold at 1.75 per cent but governor Glenn Stevens hinted at cuts ahead if inflation remains low

Opinion

Minority government, more of the same

Michael Pascoe

Michael Pascoe   It is sad that we've deteriorated to Kardashian politics, but the reality is a minority government won't make much difference.

Comments 2

Big business not giving up the dream

Cuts 060516 afr portfolio illo karl hilzinger managed funds returns declared after tax cuts percent percentages ...

Patrick Hatch   The business lobby will double down in its campaign to have the company tax rate for large corporations cut.

Comments 8

AAA credit rating safe, for now

Moody's senior vice-president, Marie Diron, said the short-lived political uncertainty would have "limited" credit ...

Peter Martin   Credit ratings agency Moody's says Australia's triple-A rating is not under immediate threat from the election outcome, but could be if the deficit isn't wound back.

Comments 5

Australia's own Brexit moment

Elizabeth Knight.

Elizabeth Knight   Australia has delivered its contribution to political and economic uncertainty - it's our own Brexit moment.

Comments 31

Opinion

Hold the political panic

Michael Pascoe

Michael Pascoe   Why exactly are we self-flagellating over a close election?

Comments 29

Job ads rise for second month

Total job advertisements rose 0.5 per cent in June.

Job advertisements up again in an encouraging sign the economy is growing fast enough to generate demand for labour.

Petrol, food costs lift inflation gauge

Contributing to the overall change in June were price rises for automotive fuel, holiday travel and accommodation and ...

A private-sector gauge of consumer prices rose sharply in June on higher costs for petrol and food, though measures of underlying inflation remained muted.

Tax haven route won't work for UK: OECD

The UK is already in the process of cutting its corporate tax rate to 17 per cent, compared to an average among other ...

The UK could use its freedom from EU rules to slash corporate tax, but the political price would be high, the OECD says.

'Messy' result may lead to credit downgrade, interest rate cut

Shane Oliver from AMP says the election will weigh on investors

Michael Evans, Madeleine Heffernan   The "messy" election result is "not a great outcome for the economy and investment markets" and means there is a risk of a downgrade to Australia's credit  rating, according to a leading economist.

Brexit may boost housing demand: Macquarie analyst

Higher net migration caused by Brexit could lift demand for housing.

Clancy Yeates   Brexit could have a surprising economic benefit for Australia by prompting more expatriates to return home and deterring locals from heading abroad.

Hung parliament 'bad for Australia'

Malcolm Turnbull: does he have a mandate for corporate tax cuts?

Madeleine Heffernan   Election uncertainty to hit business confidence, and then consumer confidence, bank CEO Mike Hirst says.

INTEREST RATES

Odds of a rate cut on Tuesday?

The property market is still growing, especially in Sydney and Melbourne.

Caitlin Fitzsimmons   Most - but not all - economists expect the Reserve Bank to keep interest rates on hold despite Britain's referendum to leave the European Union.

Businesses will not 'profit' from homeless

A spokesman for the federal Coalition denied businesses would profit from victims of domestic violence and homelessness.

Anna Patty   Unions fear funding for victims of domestic violence and homelessness is at risk.

Comments 4

Goodbye to old England forever?

Hard-fought diplomatic talks will ultimately determine how much access to Europe's common market the UK retains.

Clancy Yeates   It's long been our route to the EU, but will the Brexit make Australian companies shift their European bases from London to the continent?

Comment

Won't somebody please think of the children?

Ross Gittins

Ross Gittins   There's a great weakness in the (otherwise sound) argument that borrowing for infrastructure is a good thing.

How Putin started the milk crisis

Russian President Vladimir Putin gestures during his annual end of year news conference in Moscow, Russia, Thursday, ...

Patrick Hatch   Why Vladimir Putin is hurting farmers more than $1 milk.

Comments 61

China manufacturing growth stalls

Manufacturers continued to cut jobs and at a faster pace.

Growth in China's manufacturing sector stalled in June, adding to expectations that Beijing will have to roll out more stimulus soon to boost the sluggish economy.