Latest updates on Key Economic Indicators

Australian Dollar: $0.7560 USD (up $0.0018 USD)

Iron Ore Jan Spot Price (SGX): $153.14 USD (up $2.63 USD)

Oil Price (WTI): $47.60 USD (up $0.65 USD)

Gold Price: $1,852.31 (up $27.11 USD)

Dow Jones: 30,175.38 at 3.10pm NY time (up 168.35 points on yesterday's close)

All changes compared to 7am yesterday.)

---

Heavy rain and flooding risks as northern NSW enters sixth day of wild weather

A dangerous low pressure trough over the northern New South Wales coast continues to bring heavy rain and flooding to the region.

Rainfall rates are expected to ease on Wednesday morning as the trough weakens and extends south.

However, heavy rainfall is forecast across the Mid-North Coast, with a line of showers that could extend to the Northern Rivers.

Locations copping the brunt of the severe weather are Coffs Harbour, Port Macquarie, Byron Bay, Ballina, Yamba, Maclean, Woolgoolga, Sawtell and Dorrigo.

The Bureau of Meteorology said the showers and thunderstorms would continue for the next couple of days, bringing the risk of flash flooding.

"Rainfall rates could be locally enhanced with thunderstorms, leading to the possibility of very heavy rainfall and dangerous flash flooding along coastal areas," a spokesperson said.

The risk should ease later on today.

Today's morning's high tide, which will peak around 10:00am to 10:30am, could cause flooding in low-lying coastal areas.

Flood warnings have been issued for the Wilsons, Bellinger and Kalang, Macleay, Hastings, Orara, Nambucca, Camden Haven and Richmond rivers.

A flood watch remains in place for the remaining river catchments along the Mid-North Coast and Northern Rivers.

Rainfall catchments have seen 142 millimetres at Coffs Harbour and 182mm at Maria River since 9:00am on Tuesday.

The Tweed Heads offshore wave rider buoy has recorded significant wave heights of around 5 metres and a maximum wave height of more than 10m during Monday and overnight.

---

China coal ban boring, predictable & 'an FTA breach'

The Australian - Page 1 & 4 : 16 December 2020 -Original article by Geoff Chambers - PortMac.News Summary

Prime Minister Scott Morrison says the federal government has received no "official information" from China about restrictions on coal imports from Australia.

He says that any such move would be in breach of both the free-trade agreement between the two nations and World Trade Organization rules.

China's state-owned media has reported that Australian thermal coal will be blacklisted in favour of coal from countries such as Indonesia, Russia and Mongolia.

Morrison contends that a ban on higher-quality Australian coal would increase China's carbon emissions. He has also emphasised that Japan and India are bigger markets for Australian thermal and coking coal respectively than China.

---

China accuses Australia of playing the victim and politicising trade, says coal ban is 'responsible act'

abc.net.au - Page Online : 16 December 2020 - PortMac.News Summary

Another boring, predictable China story, couldn't be bothered to write it up.

---

DFAT still uses Beijing agency

The Australian - Page 1 & 4 : 16 December 2020 - Original article by Sharri Markson - PortMac.News Summary

It has been revealed that the Department of Foreign Affairs & Trade recently used a Chinese government-owned agency to recruit senior staff for Australia's embassy in Beijing.

Liberal senator Concetta Fierravanti-Wells has called for a parliamentary inquiry in the wake of revelations that members of the Chinese Communist Party are working in at least 10 foreign consulates in Shanghai, including Australia's.

Crossbench senator Rex Patrick in turn wants changes to the foreign influence legislation to require Australians to declare any memberships of a foreign political party.

---

Dan Tehan tipped to take over trade in Morrison reshuffle

The Guardian Australia - Page Online : 16 December 2020 - Original article by Katharine Murphy, Amy Remeikis - PortMac.News Summary

Prime Minister Scott Morrison has defended his government's handling of Australia's relationship with China, ahead of a looming cabinet reshuffle that will include the crucial trade portfolio.

There is growing speculation that Education Minister Dan Tehan will replace outgoing Trade Minister Simon Birmingham, who has taken on the finance portfolio in the wake of Mathias Cormann's decision to quit parliament.

Employment Minister Michaelia Cash is turn tipped to gain the education portfolio.

Labor may respond to the cabinet reshuffle with changes to its own frontbench.

---

China's plan to build a fish processing facility in the Torres Strait raises alarm over fishing, border security

abc.net.au - Page Online : 16 December 2020 - Original article by Renee Cluff - PortMac.News Summary

There is growing concern about China's plans to establish a $204m fishing facility on Papua New Guinea's Daru Island.

As reported by PortMac.News earlier this week, the PNG government has signed a signed a memorandum of understanding to allow the facility to be built via China's controversial Belt and Road Initiative.

Torres Strait Fishing Association president Phillip Kestrel says China could use the Torres Strait Treaty as a "back door" to gain access to Australia's fisheries.

Federal MP Warren Entsch has also questioned China's motives for building the fishing facility, given that Australia and the US intend to increase their naval presence on PNG's Manus Island. [Click to view full article here]

---

Age divide in queue for Covid vaccine

Herald Sun - Page 13 : 16 December 2020 - Original article by Sue Dunlevy - PortMac.News Summary

The federal government will compile the list of people who will be given priority in receiving a COVID-19 vaccine when it releases expert advice on the roll-out strategy in late January.

However, frontline health workers and aged-care staff will be the first to receive a vaccine.

The government will also prioritise people based on age, with the nation's population to be divided into 12 age brackets.

People aged 70+ will receive a vaccine first, followed by those in the 65-70 age group.

The rest of the population will be divided into five-year increment age groups. The UK has adopted a similar strategy for its COVID-19 vaccination program.

---

Moderna's COVID-19 vaccine is highly protective, FDA says

The Age - Page Online : 16 December 2020 - Original article by Manas Mishra, Michael Erman - PortMac.News Summary

Media reports in the US have suggested that the Food & Drug Administration is set to approve Moderna's COVID-19 vaccine for emergency use within days.

Documents prepared by FDA staff for an upcoming meeting of its advisory panel indicate that the vaccine is highly effective in preventing confirmed cases of COVID-19 and raises no specific safety issues in people over the age of 18.

The US has already started rolling out the rival Pfizer vaccine; the US death toll from COVID-19 now exceeds 300,000.

---

MYEFO to lift aged-care spend by $1b

The Australian Financial Review - Page 4 : 16 December 2020 - Original article by Phillip Coorey - PortMac.News Summary

The federal government's Mid-Year Economic and Fiscal Outlook will include an additional $1bn for the aged-care sector. Some $850m of this funding will be allocated to the provision of an extra 10,000 home care packages.

The government has provided funding for an extra 50,000 home care packages since the aged-care royal commission delivered its interim report.

Council on the Ageing CEO Ian Yates says more action is needed to reduce the length of time people must wait to receive in-home care, which is still about 12 months. Meanwhile, Labor says the MYEFO should include measure to address Australia's high level of unemployment and underemployment.

---

Prime minister's department says granting FOI request on taxpayer-funded research would 'prejudice' government

The Guardian Australia - Page Online : 16 December 2020 - Original article by Katharine Murphy - PortMac.News Summary

Former Crosby Textor researcher Jim Reed was awarded a $541,750 contract by limited tender in April to undertake coronavirus-related market research on behalf of the department of Prime Minister Scott Morrison.

Reed's market research firm Resolve Strategic was awarded a separate contract from the Treasury following a recommendation from Morrison's department.

The federal government has not publicly released Reed's research, and it has rejected Freedom of Information requests lodged by both Labor and 'Guardian Australia'.

Reed established Resolve Strategic after leaving Crosby Textor, which undertakes polling on behalf of the Liberal Party. 

---

Union calls for minimum wage for fruit pickers

The Australian - Page 6 : 16 December 2020 - Original article by Ewin Hannan - PortMac.News Summary

The Australian Workers' Union will push for changes to the Horticulture Award to address the issue of wage exploitation in the sector.

The ASU has applied to the Fair Work Commission to vary the industry award to include a wage floor for seasonal farm workers.

The union's proposal would provide a guaranteed minimum wage of $24.80 an hour, although piece rates would still be allowed.

A recent investigation found that some fruit-pickers in the in the Coffs Harbour region of New South Wales were being paid just $3 an hour.

---

Compensation action alleges Maccas denied workers paid breaks

The Australian - Page 6 : 16 December 2020 - Original article by Ewin Hannan - PortMac.News Summary

A McDonald's franchisee in South Australia faces legal action over allegations that its employees were not given paid rest and drink breaks.

The Shop, Distributive & Allied Employees Union's state secretary Josh Peak says the union will contend that the workers had been intentionally denied their right to paid breaks.

Meanwhile, workers at a Coles distribution centre have accepted an annual pay rise of 3.5%.

The United Workers Union had sought a 5.5% increase. A dispute over a redundancy package for the workers has not been resolved.

---

Flight Centre pushed for 'Quotes within an hour'

The Australian - Page 15 : 16 December 2020 - Original article by Glen Norris - PortMac.News Summary

Former employees of Flight Centre have told the Federal Circuit Court that the travel group's commission system encouraged them to take short lunch breaks in order to make more sales.

They have also alleged that staff were required to provide customers with a written quote within 60 minutes and secure a sale quickly to prevent them from shopping around for a better deal.

It is also alleged that staff were regularly expected to do unpaid overtime in order to finalise a sale.

The Together union alleges that Flight Centre was in breach of the Fair Work Act.

---

'Time to unite, time to heal': Biden

The Australian - Page 9 : 16 December 2020 - Original article by Cameron Stewart - PortMac.News Summary

US president-elect Joe Biden has used a speech in his hometown of Wilmington, Delaware to declare that democracy has prevailed, after electoral college members affirmed his presidential election win.

Biden also said that the election was honest, free and fair, and he praised local election officials for doing their job under "Enormous political pressure" and during a pandemic.

However, President Donald Trump is still maintaining that he was a victim of electoral fraud.

---

Shares sink over trade war fears

The Australian - Page 19 : 16 December 2020 - Original article by Rebecca Le May - PortMac.News Summary

The Australian sharemarket lost ground on 15 December, with the S&P/ASX 200 easing 0.43%t to close at 6,631.3 points.

Fortescue Metals Group was down 3.07% at $21.48, Whitehaven Coal shed 5.88%t to end the session at $1.52 and the Commonwealth Bank was one per cent lower at $83.07.

However, Zip Co was up nearly one per cent at $5.22 and Coles Group added 0.55% to finish at $18.28.

---

'Solvency phase': RBA warns of new bank pain

The Australian - Page 13 & 17 : 16 December 2020 - Original article by Richard Gluyas - PortMac.News Summary

The Reserve Bank of Australia's head of stability Jonathan Kearns says the liquidity phase of the COVID-19 crisis is giving way to a solvency phase, which is emerging as a new challenge for the banking sector.

Kearns says the economic shock from the pandemic has been much worse than the global financial crisis, but notes that Australia's banks have been resilient during COVID-19 and have continued to lend.

Banks are likely to start encouraging customers to resume loan repayments in the March quarter, after many opted to defer repayments due to the pandemic.

---

Bank dividend payout curbs relaxed

The Australian - Page 17 : 16 December 2020 - Original article by Cliona O'Dowd - PortMac.News Summary

Nathan Zaia of Morningstar says the Australian Prudential Regulation Authority's decision to remove the cap on bank dividends from the start of 2021 is a "logical and reasonable move".

He says banks may opt for share buybacks in response to the decision.

APRA had released revised guidance in July, stating that dividend payout ratios should be capped at 50% of earnings.

It has cited factors such as the improving economic outlook and an increase in bank capital for its decision to abolish the cap, which was introduced in response to the COVID-19 pandemic. However, APRA says banks should ensure that their dividend payout ratios are sustainable.

---

New data shows COVID-19's impact on Australians' personal finances, including debt and insurance

Market Research Update - Page Online : 16 December 2020 - Original article by Roy Morgan - PortMac.News Summary

New data from Roy Morgan shows the financial impact COVID-19 has had on Australians.

Almost six million Australians (28%) have had their employment negatively impacted by COVID-19 and 51% of them made resulting changes to their personal finances, as did many whose employment was not impacted directly.

Throughout September and October, more than 7,000 Australians were surveyed about changes they had experienced in their employment since March and about the impact on their payments of mortgage, rent, insurance, utility bills, credit cards and personal loans.

Some 28% of respondents (5.9 million Australians) reported experiencing one or more negative employment changes.

Of those who have experienced negative employment changes due to COVID-19, (51.0% reported reducing housing and insurance payments or utility bills, cutting back on debt repayment, and/or making early-release withdrawals from their superannuation.

In all, 27.3% of all Australians, including those who did not experience employment changes, made such changes to their finances due to the impact of COVID-19.

The single largest financial change was early access to superannuation.

The option was taken up by almost 10% of all Australians, and by 18.5% of those who experienced negative employment changes due to COVID-19. [Click to view full article here]

---

Court clears Village deal as dissenter stays away

The Australian Financial Review - Page 27 : 16 December 2020 - Original article by Max Maddison - PortMac.News Summary

The Federal Court has approved BGH Capital's deal to acquire cinemas and theme parks group Village Roadshow.

The company's shareholders recently endorsed BGH's scheme A offer of $3 per share.

New York-based fund manager Mittleman Brothers opted against making an application to appear before the court, having been a vocal opponent of the takeover bid.

BGH will have a 78% stake in Village Roadshow, while the Kirby family and former CEO Graham Burke will hold a stake of about 22%.

---

Iron ore to defy probe threat

The Australian - Page 13 & 19 : 16 December 2020 - Original article by Nick Evans - PortMac.News Summary

Shares in Australia's major iron producers retreated on 15 December in response to the China Iron & Steel Association's call for regulatory intervention to address the rising iron ore price.

However, resources analysts expect the iron ore price to remain high in the near-term, due to continued strong demand for steel in China.

Lyndon Fagan of JP Morgan expects the benchmark price to average about $US140 a tonne in the March 2021 quarter and $US126 a tonne for the calendar year.

---

Miners' crisis talks as China coal ban bites

The Australian - Page 13 & 19 : 16 December 2020 - Original article by Perry Williams, Will Glasgow - PortMac.News Summary

Ship broking firm Braemar says that 74 bulk carriers are now waiting to unload a combined 8.7 million tonnes of Australian coal at ports in China.

Some foreign ship owners have raised the prospect of seeking compensation from Chinese coal buyers over the stand-off.

Meanwhile, coal producers have discussed the growing tensions with China in a conference call with the Minerals Council of Australia.

The MCA has urged the two nations' governments to co-operate in resolving the rift that has affected Australia's coal trade.

---

Lendlease to buy back up to 841 homes at 'Sinking' Jordan Springs East site in Sydney

The Guardian Australia - Page Online : 16 December 2020 - Original article by Elias Visontay - PortMac.News Summary

Property developer Lendlease has advised that it will offer to repurchase or repair any homes in the Sydney suburb of Jordan Springs East that Penrith City Council has identified as being at risk of damage or structural issues due to subsidence.

The council has added notations to the planning certificates of more than 840 home on the former landfill site.

However, a spokesman for Lendlease says the company believes that structural issues have only affected about 90 homes in the suburb.