Latest updates on Key Economic Indicators

Australian Dollar: $0.7542 USD (down $0.0012 USD)

Iron Ore Jan Spot Price (SGX): $150.51 USD (down $6.72 USD)

Oil Price (WTI): $46.95 USD (up $0.38 USD)

Gold Price: $1,825.20 (down $14.23 USD)

Dow Jones: 30,007.03 at 3.10pm NY time (down 39.34 points on Friday's close)

China's The Global Times appears to confirm a ban on Australian coal imports amid perilous trade tensions

Chinese state media appears to have confirmed that Beijing has blocked Australian coal imports, in a move which is likely to cost the economy billions of dollars and further inflame tensions between the two countries.

Nationalistic state-owned tabloid The Global Times reports that China's top economic planner has approved power plants to import coal without clearance restrictions from several countries "except for Australia".

Australian government sources say such media reports should be treated seriously because they are generally directly sanctioned by the Chinese Government.

China has unofficially banned Australian coal imports since October, leaving dozens of bulk carriers stranded offshore.

The freeze has stoked deep anxiety in the mining industry.

Last month, Chinese authorities blamed "environmental problems" for the delays.

Australian Government officials have dismissed this explanation in private.

And the Global Times report seems to confirm that China's leaders are now willing to publicly confirm — at least indirectly — that the ban is an act of economic punishment, and that it is likely to continue.

The newspaper quotes Wang Yongzhong, director of the Institute of Energy and Economy at the Chinese Academy of Social Sciences, who warns "Australia is gradually losing the Chinese market".

He says China is sourcing coal from Indonesia, Russia and from Mongolia, which "could take a large share from Australian coal, as the relationship between China and Australia has been deteriorating".

The article also says China's coal use will drop over coming decades as it moves to reduce carbon emissions.

If the freeze is maintained, it could have significant economic implications for Australia, which last year exported coal worth almost $14 billion to China.

Thermal coal used by Chinese power stations accounts for about $4 billion of that figure.

Australia's Trade Minister Simon Birmingham has called on Chinese authorities to "rule out" the Global Times report.

Senator Birmingham said if the story is accurate it "would appear to be the use of discriminatory practices against Australian coal".

"We reiterate that all terms of our free trade agreement and world trade obligations between Australia and China should be upheld and respected," he said.

London to go into strictest restrictions as new variant of COVID-19 identified

abc.net au - Page Online : 15 December 2020 - PortMac.News Summary

The British government has announced that Greater London and parts of Essex and Hertfordshire will be placed under Tier 3 coronavirus restrictions from 16 December.

Shops, schools and gyms will remain open, but pubs and restaurants have to close unless they offer takeaway or delivery.

The action follows COVID-19 infection rates in the British capital increasing to among the highest in the country, while Health Secretary Matt Hancock said a new variant of COVID-19 has been identified in the past few days; he said it could be connected to a rise in virus cases in the south of England.

Record iron ore prices put steel into Treasury's bottom line

The Australian - Page 6 : 15 December 2020 - Original article by Matthew Cranston - PortMac.News Summary

Economists expect the federal government to downwardly revise the 2020-21 Budget deficit to around $200bn in its upcoming Mid-Year Economic & Fiscal Outlook.

The government had forecast a deficit of nearly $214bn when it handed down the Budget just two months ago.

A surge in the iron ore price since October has boosted government revenue.

Some economists believe that the Treasury will have to revise its iron ore price estimates in the MYEFO; Budget forecasts were based on a free-on-board iron ore price of just $US55 a tonne, compared with a recent peak of more than $US160 a tonne (today $US150.51).

Beijing delivers big miners a 'please explain' on ore prices

The Australian - Page 1 & 6 : 15 December 2020 - Original article by Will Glasgow, Perry Williams - PortMac.News Summary

The China Iron & Steel Association has called for regulatory intervention to address the rising iron ore price.

The CISA has indicated that its members want Chinese regulators to investigate iron ore prices and take appropriate action over any breaches of laws and regulations.

BHP and Rio Tinto have been asked to meet with CISA officials to explain why their iron ore prices are so high, while Fortescue Metals Group is expected to be asked to do so in early 2021.

Fears that Australia's iron ore trade may the next target for Chinese import restrictions have intensified in the wake of reports that China has formalised a ban on coal imports.

China formalises cut to Australian coal imports, state media reports

The Guardian Australia - Page Online : 15 December 2020 - Original article by Paul Karp - PortMac.News Summary

China's National Development & Reform Commission recently met with major power companies and gave them approval to import coal without clearance restrictions, but with the exception of Australia.

This is according to a report in the state-owned 'Global Times'; the meeting appears to indicate that China is formalising import restrictions on Australia's $14 billion coal export sector.

Existing restrictions have resulted in ships with hundreds of million of tonnes of Australian coal being stranded off the Chinese coast as part of a growing trade dispute between the two nations.

The report in the 'Global Times' indicated that China would be prioritising coal imports from Indonesia, Russia and Mongolia.

ASIO zeroes in on party games

The Australian - Page 1 & 6 : 15 December 2020 - Original article by Sharri Markson, Jared Lynch - PortMac.News Summary

The Australian Security Intelligence Organisation will examine claims that members of the Chinese Communist Party are working in at least 10 foreign consulates in Shanghai, including the Australian consulate.

A leaked copy of CCP membership records shows that party members are also working in companies such as Boeing and the ANZ Bank.

Australia's former ambassador in China, Geoff Raby, says it is "common knowledge" that members of the CCP work in embassies and companies, but he notes that there is "ample and very good separation" between sensitive and non-sensitive areas within embassies.

Downer cautions business on China

The Australian - Page 6 : 15 December 2020 - Original article by Ben Packham - PortMac.News Summary

Former foreign minister Alexander Downer has urged Australian businesses to remain "quietly patriotic" when it comes to the nation's strained relationship with China.

Downer says businesses risk alienating their customers, staff and the general public if they side with China against the federal government just to push up their share prices.

Downer notes that Japanese companies were "quietly patriotic" during decade-long tensions between China and Japan that finally ceased in 2006, while he says China's action in circulating its list of 14 grievances with Australia was "childish".

Inflation Expectations at 3.4% in November

Market Research Update - Page Online : 15 December 2020 - Original article by Roy Morgan - PortMac.News Summary

In November, Australians expected inflation of 3.4% annually over the next two years, down 0.1% points from October but still up 0.2% points on the record low in August.

Inflation Expectations are still 0.6% points below the pre-pandemic month of March 2020.

Over the last few months Inflation Expectations have increased from the record low of 3.2%, and when assessed by home ownership status the drive higher has come from Australian home owners, who now expect inflation of 3.4% annually over the next two years - up 0.3% points since August.

The opening up of Australia continued during November, with border restrictions between states coming down throughout the month and Victoria fully out of lockdown in late October. Perhaps unsurprisingly, the biggest increase in Inflation Expectations for November was in Victoria, up 0.2% points to 3.4%.

On a State-based level Inflation Expectations are now highest in WA at 3.6% (down 0.1% point), SA at 3.6% (up 0.2% points) and Queensland at 3.5% (unchanged) - all above the national average.

Inflation Expectations are below the national average in New South Wales at 3.2% (down 0.5% points) and Tasmania at 3.3% (down 1.1% points). [Click to view full article here]

First vaccines in Australia may be ready in February

The Australian Financial Review - Page 4 : 15 December 2020 - Original article by Ronald Mizen, Tom McIlroy - PortMac.News Summary

The federal government is expected to receive 1.9 million doses of AstraZeneca's coronavirus vaccine in January, and a similar number of doses in February.

The government is still aiming to commence inoculating people against COVID-19 in March, although sources have indicated that this could potentially be brought forward to February.

The Therapeutic Goods Administration is slated to make a decision on approving the first COVID-19 vaccines by the end of January. Health Minister Greg Hunt says all Australians who want a vaccine will have access to it by October.

Vaccine likely to prevent Covid developing but not stop transmission

The Guardian Australia - Page Online : 15 December 2020 - Original article by Melissa Davey - PortMac.News Summary

The first batch of COVID-19 vaccines to be made available in Australia are likely to prevent the virus from developing but not stop vaccinated people from transmitting it to others.

This is according to a review commissioned by the Australian Academy of Health & Medical Sciences; the review states that Australia will need to maintain its current regime of testing, contact tracing, isolation and quarantine.

The review also states that ongoing monitoring of vaccinated people will be essential, and that lockdowns as a response to virus outbreaks should be a "measure of last resort".

New security rules cover groceries

The Australian Financial Review - Page 10 : 15 December 2020 - Original article by Tom Burton - PortMac.News Summary

New laws will require companies in critical infrastructure sectors to report cyber breaches to the Department of Home Affairs, as well as disclosing their major assets and risk management details.

The sectors impacted include energy, water and sewage, food and groceries, communications, heath and transport.

Fines of up to $10,500 can be imposed for failing to report material cyber breaches, while failing to comply with risk management obligations could result in penalties of up to $42,000.

Ban screen scraping and child profiling, says privacy boss

The Australian Financial Review - Page 10 : 15 December 2020 - Original article by Tom Burton - PortMac.News Summary

Privacy Commissioner Angelene Falk has called for small businesses and political parties to no longer be exempt from privacy regulation in her submission to a review of the Privacy Act.

The exemption for small businesses, which applies to those with less than $3 million in revenue a year, was put in place in 2000 as they were viewed as 'low risk'.

However, Falk states that such an exemption is an 'anomaly' among global privacy laws.

Falk has also called for the prohibition of digital practices such as the profiling of children and 'screen scraping'; she also contends that the exemption that is afforded to journalists needs to be more strongly enforced.

Murray-Darling Basin plan will need overhaul in 2026 as droughts increase, report says

The Guardian Australia - Page Online : 15 December 2020 - Original article by Anne Davies - PortMac.News Summary

The Murray-Darling Basin plan will need to be revamped in 2026 to take into account more dry periods because of climate change, according to a review to be released by the Murray-Darling Basin Authority on 15 December.

Climate change is expected to see dry periods occur on average every five years instead of 10, while the review concludes that progress is being made towards achieving the goals of the plan.

However, the review notes there are areas where the plan is behind schedule, including progress on New South Wales' 20 water resource plans.

Gold-plated incompetence

The Australian - Page 21 : 15 December 2020 - Original article by Robert Gottliebsen - PortMac.News Summary

Many consider Australian Taxation Office assistant commissioner Gordon Brysland to be Australia's leading expert on the GST and related matters.

Therefore, it will no doubt shock many that the ATO ignored his advice in the so-called 'gold case' and deliberately set out to bankrupt honest gold refiners.

Not only did it ignore Brysland's advice, it failed to close a loophole that had been in place since 2000 and which is estimated to have cost the states $1 billion in GST revenue.

Brexit talks pushed beyond deadline

The Australian Financial Review - Page 13 : 15 December 2020 - Original article by Gabriela Baczynska, Costas Pitas - PortMac.News Summary

Great Britain will remain an informal member of the European Union until 31 December.

Talks to avoid a no-deal exit when the nation officially leaves the EU on 1 January were due to end on 13 December, but European Commission President Ursula von der Leye and British Prime Minister Boris Johnson have agreed that talks will continue in an attempt to reach a trade deal agreement.

Irish Prime Minister Micheal Martin says failing to secure a deal would amount to an "appalling failure of statecraft" on both sides, while German Chancellor Angela Merkel says any opportunity to get a deal struck is "highly welcome".

Bourse shrugs off weak US lead

The Australian - Page 20 : 15 December 2020 - Original article by Rebecca Le May - PortMac.News Summary

The Australian sharemarket posted a solid gain on 14 December, with the S&P/ASX 200 adding 0.26% to close at 6,660.2 points.

The Commonwealth Bank was 1.86%t higher at $83.92, Coles Group advanced 1.11% to $18.18 and Eagers Automotive rose 5.1% to $14.22.

However, Fortescue Metals Group shed 3.44% to end the session at $22.16 and Santos was down 1.65%t at $6.57.

Eftpos, BPay, NPP unite to take on card giants

The Australian Financial Review - Page 14 & 20 : 15 December 2020 - Original article by James Eyers - PortMac.News Summary

Three domestic payment schemes - NPP Australia, Bpay and Eftpos - have agreed to merge, which will require approval from the Australian Competition & Consumer Commission.

The big banks are shareholders in all three companies, but each has a different mix of shareholders; the Reserve Bank is a shareholder of NPP Australia, while Coles and Woolworths are shareholders of Eftpos.

Combining the three companies will make competing against card companies Visa and Mastercard easier, while the three state that payment costs should fall once they merge. They will remain separate entities with a single board.

Slater & Gordon launches class action over IPO Wealth Fund

The Australian - Page Online : 15 December 2020 - Original article by Lisa Allen - PortMac.News Summary

Slater & Gordon has launched a class action over the failed IPO Wealth Fund, with Emma Pelka-Caven from the law firm saying some members of the class action "lost everything they have".

Slater & Gordon will argue that the IPO Wealth Fund was marketed to potential unit holders as a "term deposit alternative", but Pelka-Caven says that they were sold a "risky, illiquid and speculative investment".

Vasco Investment Managers, the trustee of the IPO Wealth Fund, advanced around $86 million in funds raised from investors between April 2017 and March 2020, but it is expected that most of this money will not be recovered by liquidators.

Some retailers face their last Christmas

The Australian Financial Review - Page 17 : 15 December 2020 - Original article by Simon Benson - PortMac.News Summary

Deloitte Access Economics partner David Rumbens says the Christmas trading period is critical for retailers in any year, but the COVID-19 pandemic means it will be more so in 2020.

Rumbens notes that coronavirus measures such as government stimulus payments have resulted in fewer retailers going into administration compared with 2019.

However, he cautions that some retailers are likely to struggle financially when stimulus measures start to be phased out in early 2021.

Refinery rescue 'May fall short'

The Australian - Page 13 & 16 : 15 December 2020 - Original article by Perry Williams - PortMac.News Summary

Ampol CEO Matt Halliday says the federal government's rescue package for oil refineries acknowledges the "acute challenges" facing the sector in the near-term.

However, Ampol is still reviewing its Lytton refinery in Brisbane and could convert it into an import terminal.

Viva Energy will take up the offer of an interim subsidy, which comprises a payment of at least $0.01 per litre for the production of petrol, diesel and jet fuel.

Viva estimates that the subsidy will contribute $30m to its underlying earnings in the first half of 2021. ExxonMobil has advised that it is evaluating the package.

PlaySide Studios gears up for debut

The Australian Financial Review - Page 18 : 15 December 2020 - Original article by Natasha Gillezeau - PortMac.News Summary

Gaming company PlaySide Studios will debut on the Australian sharemarket on 17 December.

It will be the biggest non-gambling gaming stock on the local bourse.

The company boasted revenue of $7.7 million in the year to 30 June, up 56% on the previous financial year.

PlaySide Studios produced the game 'Catch the Ark' in its first year of business, attracting the attention of companies such as Nickelodeon and Disney.

PlaySide Studios was founded by Gerry Sakkas, Mark Goulopoulos and Aaron Pasias in 2011.

Taxpayers on hook for oil clean-up

The Australian Financial Review - Page 14 & 21 : 15 December 2020 - Original article by Elouise Fowler - PortMac.News Summary

Keith Pitt, the Minister for Resources, Water and Northern Australia, has announced that the federal government will decommission the 'Northern Endeavour'.

The offshore oil production vessel was ordered out of service by the offshore petroleum regulator in July 2019, which resulted in the ship's owner, Northern Oil & Gas Australia, being placed into administration in February.

The cost of decommissioning the 'Northern Endeavour' could be as much as $250 million, but Pitt says taxpayers should not be left with this burden.

The government wants the oil and gas industry to pay the costs associated with decommissioning the vessel.