Latest updates on Key Economic Indicators

Australian Dollar: $0.7570 USD (up $0.0010 USD)

Iron Ore Jan Spot Price (SGX): $154.64 USD (up $1.50 USD)

Oil Price (WTI): $47.80 USD (up $0.20 USD)

Gold Price: $1,863.48 (up $11.17 USD)

Dow Jones: 30,198.66 at 3.10pm NY time (up 23.28 points on yesterday's close)

All changes compared to 7am yesterday.)

China's 'Hit List' list of sanctions & tariffs on Australian trade just keeps growing.

Since the Chinese ambassador suggested Australia's push for an independent investigation into the origins of COVID-19 could lead to a Chinese consumers turning away from Australian beef and wine, there's been a litany of official and unofficial trade sanctions introduced.

Having trouble keeping up? Here's a quick guide to where the trade war has landed the heaviest blows.

Barley:

In May, Australian grain growers were hit for six when China announced tariffs of 80 per cent on barley.

After an 18-month investigation into claims Australian farmers had engaged in anti-competitive behaviour, China applied the anti-dumping tariff would be 73.6 per cent, while the anti-subsidy tariff would be 6.9 per cent.

Beef and lamb:

Last year, Australia sold almost $3 billion of red meat to China, making it the most valuable farm export, but now there are eight Australian abattoirs currently blocked from selling red meat to China.

In the same week that China flagged its plans to tariff barley, four major Australian beef exporters were blacklisted by China over claims of mislabelling.

Wine:

Australian wine sales to China have effectively ground to a halt, first with an unofficial ban that held up hundreds of shipping containers at ports, and subsequently with the introduction of tariffs.

In August, China launched an investigation into claims Australian winemakers dumped wine, and followed up days later with a separate investigation into claims winemakers were subsidised.

It has since introduced interim tariffs of up to 200% for dumping, and added insult to injury with a 6% tariff for countervailing duties.

But don't worry, Xi and the top guy's in Beijing won't go short - The Chinese people pick up their bar bill.

Cotton:

Growers and exporters say their customers in China have been told to stop buying Australian cotton.

Australian Government sources have told the ABC the cotton industry could face tariffs as high as 40 per cent, a sanction that could make the trade with China unviable

Lobsters:

Tonnes of live Australian lobsters were left to die on the tarmac as China's customs delayed quarantine inspections in November, fuelling uncertainty among Australian fishers.

Timber:

In 2019, nearly half of Australia's timber exports went to China, a market worth $1.9 billion.

Now China is refusing to accept timber from four Australian states.

The detection of bark beetle in a shipment of Queensland timber led China to block that trade in early November.

China's customs officials then notified Australia that it had indefinitely suspended timber imports from Victoria after 12 shipments this year were also found to carry bark beetle.

Irrespective of the quarantine testing, Australian timber was singled out as a target for the unofficial trade sanctions set to come into effect on November 6.

Coal:

For months, dozens of bulk carriers carrying Australian coal were stranded off the coast of two major Chinese ports unable to unload their cargoes.

The knockout blow came when China's state media seemingly confirmed that Beijing has blocked Australian coal imports, jeopardising $14.5 billion of trade.

NSW records two new cases of COVID-19 on Sydney's Northern Beaches, 10 venues on alert

abc.net.au - Page Online : 17 December 2020 - PortMac.News Summary

New South Wales has recorded its first locally-acquired cases of COVID-19 since 3 December.

Health authorities have commenced contract-tracing and genome sequencing after a man in his 70s and a woman in her 60s tested positive.

They are close contacts of each other and failed to self-isolate while awaiting the results of COVID-19 tests.

They visited a number of venues in Sydney's Northern Beaches region while infections, prompting NSW Health to issue an alert for people who were at these venues at the same time.

A van driver who shuttles flight crews to and from Sydney Airport has also tested positive. The cases are not believed to be linked.

Iron ore, JobKeeper trim deficit

The Australian Financial Review - Page 1 & 11 : 17 December 2020 - Original article by Phillip Coorey - PortMac.News Summary

The federal government will downwardly revise the Budget deficit for 2020-21 to less than $200bn in its mid-year economic and fiscal outlook, compared with expectations of $213.7bn in October.

The Treasury has estimated that the rise in the iron ore price could boost government revenue by $1.3bn in the current financial year and $4.8bn in 2021-22.

Treasury has also adopted a 'stronger for longer' forecast for the iron ore price; it now expects it to fall to $US55 a tonne free-on-board by the end of the September 2021 quarter, three months later than had been forecast in the Budget.

A rapid decline in the number of people receiving the JobKeeper wage subsidy will also boost the Budget bottom-line.

Cabinet reshuffle to focus on post-pandemic agenda

The Australian - Page 4 : 17 December 2020 - Original article by Geoff Chambers - PortMac.News Summary

The federal government's upcoming cabinet reshuffle is expected to focus on portfolios that will be a priority in 2021, including trade, tourism, employment and aged care.

Education Minister Dan Tehan is tipped to succeed Simon Birmingham in the crucial trade portfolio, and Tehan's experience as a former diplomat may be invaluable in resolving Australia's growing trade tensions with China.

There has been speculation that the government could appoint a junior trade minister as part of its strategy to reduce the nation's reliance on trade with China.

Firms struggling to find skilled workers

The Australian - Page 6 : 17 December 2020 - Original article by Patrick Commins - PortMac.News Summary

Research by the Australian Bureau of Statistics suggests that many businesses are finding it hard to attract skilled workers.

The latest survey on the business impacts of COVID-19 suggests that there is a shortage of skilled tradespersons, hospitality workers and STEM (science, technology, engineering and mathematic) professionals in particular.

The survey also found that two-thirds of medium-sized and large businesses plan to hire additional staff in the next three months, compared with a third of small businesses.

Compo laws to cover gig workers

The Australian - Page 7 : 17 December 2020 - Original article by Yoni Bashan - PortMac.News Summary

The New South Wales government may expand its workers' compensation scheme to provide coverage for delivery riders and other workers in the gig economy.

Customer Service Minister Victor Dominello is believed to be looking at this option, although he has been criticised by some colleagues for failing to consult with cabinet regarding the proposed policy change.

Some state Liberal MPs are concerned that gig economy workers could be reclassified as employees rather than contractors if they are covered by workers' compensation.

Banks, miners lead stocks surge

The Australian - Page 20 : 17 December 2020 - Original article by Rebecca Le May - PortMac.News Summary

The Australian sharemarket posted a solid gain on 16 December, with the S&P/ASX 200 rising 0.72% to close at 6,679.2 points.

Fortescue Metals Group was up 2.5% at $22.02, Resolute Mining rose 10.35% to $0.80 and Beach Energy added 1.6% to end the session at $1.91. The ANZ Bank gained 1.57% to finish at $23.33 and Afterpay was 4.18% higher at $114.60.

ANZ takes cautious view on dividends

The Australian - Page 13 & 17 : 17 December 2020 - Original article by Cliona O'Dowd - PortMac.News Summary

The ANZ Bank has advised that a review of its dividend policy will be guided by factors such as the COVID-19 pandemic and the long-term sustainability of its payout.

Chairman Paul O'Sullivan has told the bank's virtual AGM that ANZ is committed to assisting current and future customers to transition to a low-carbon future.

He added that ANZ is likely to increase its lending to the renewable energy sector beyond its initial commitment of $50bn in coming years.

Nearly 30% shareholders supported a resolution calling for the bank to reduce its exposure to the coal, oil and gas sectors.

Aussie-Lendi tie-up shakes up mortgages

The Australian - Page 13 & 17 : 17 December 2020 - Original article by Joyce Moullakis - PortMac.News Summary

The Commonwealth Bank of Australia will have a 45% stake in the merged Aussie Home Loans and online home loan platform Lendi.

The proposed merger is expected to be completed by mid-2021, subject to approval by the Australian Competition & Consumer Commission.

The value of the deal has not been disclosed, although sources have indicated that it is about $900m.

The Aussie and Lendi brands will be retained if the merger proceeds, and the combined entity is expected to consider a sharemarket listing in the next several years.

Bank upstart Xinja pulls the pin, returns funds

The Australian Financial Review - Page 1 & 18 : 17 December 2020 - Original article by Michael Roddan, James Frost - PortMac.News Summary

Challenger bank Xinja has advised customers to withdraw all funds from their accounts by 6 January, after the start-up announced that it will surrender its banking licence.

Xinja was granted an unrestricted banking licence by the Australian Prudential Regulation Authority less than 18 months ago.

Xinja has been disadvantaged by the lack of any loan products, given that it offered high interest rates on the $457m in its deposit accounts; it recently announced that customers will be paid interest on only the first $50,000 in their accounts.

Super to end year back in black

The Australian - Page 13 & 20 : 17 December 2020 - Original article by David Ross, David Rogers - PortMac.News Summary

Data from SuperRatings shows that the median balanced superannuation fund has gained 2.3 per cent so far in 2020.

The firm says the median balanced option is on track to end the year in positive territory, after eight consecutive months of positive returns.

Super funds were hard hit by the coronavirus-induced sharemarket rout in March, but the sector has rebounded by 7.5% since July. SuperRatings' executive director Kirby Rappell cautions that the outlook for 2021 is uncertain, given that the global pandemic is not over and there are a number of geopolitical risks.

Passing the at-home test: Ellume's $1bn Covid-19 windfall

The Australian - Page 13 & 20 : 17 December 2020 - Original article by Jared Lynch - PortMac.News Summary

The US Food and Drug Administration has approved a world-first COVID-19 test that has been developed by Brisbane-based biotechnology firm Ellume.

The company's home test kit allows individuals to detect COVID-19 within 20 minutes.

Ellume will commence shipping its home test kits to the US in January; CEO Sean Parsons says its entire production run for at least the next six months will be exported to the US, where the death toll from the coronavirus now exceeds 300,000.

The Ellume product will be sold over-the-counter at retailers such as Walmart and Walgreens.

'Cleared' journos to get a heads-up

The Australian - Page 2 : 17 December 2020 - Original article by Rosie Lewis - PortMac.News Summary

The federal government has accepted in full 14 of the 16 recommendations made by a parliamentary committee's inquiry into press freedom.

Another recommendation has been accepted 'in principle'.

Amongst other things, the Australian Federal Police will be required to tell journalists if they have ceased to be 'persons of interest' in an investigation, while all warrants against journalists for disclosure offences will have to be signed by a senior judge.

The government has also belatedly accepted most of the recommendations made by Philip Moss's review of the Public Interest Disclosure Act, which was completed in 2016.

CCP tied to local media outlets

The Australian - Page 4 : 17 December 2020 - Original article by Ben Packham - PortMac.News Summary

The Australian Strategic Policy Institute has revealed that four Chinese-language media outlets in Australia are either directly owned by the Chinese Communist Party or have received financial support from it.

The ASPI has also found that 17 of the 24 Chinese-language media outlets in Australia have links to the CCP via its overseas influence arm, the United Front Work Department.

In addition, executives from half of these media outlets have been members of groups that are linked to the United Front.

Advertising market grows for the first time in 26 months

The Australian Financial Review - Page Online : 17 December 2020 - Original article by Natasha Gillezeau - PortMac.News Summary

Data from SMI shows that Australia's advertising sector recorded year-on-year growth of 0.1% in bookings during November. This figure does not include digital bookings, with revenue falling by 4.7% overall.

However, SMI expects positive overall growth for the month when late bookings are taken into account.

SMI Australia & New Zealand MD Jane Ratcliffe says the advertising market has improved since COVID-19 restrictions were eased.

She notes that the growth in November follows an "unprecedented" revenue decline for 26 consecutive months.

Game, set and match: Fans will be served tennis action

Herald Sun - Page 10 : 17 December 2020 - Original article by Peter Rolfe, Scott Gullan - PortMac.News Summary

The Victorian government is expected to shortly confirm that the 2021 Australian Open will be held in Melbourne from 8-21 February.

Other major tennis events will be staged in the week before the first grand slam tournament of the year.

The government is also set to strike a deal with Tennis Australia for international players to arrive in Victoria from mid-January and attend training sessions while in quarantine.

Tennis Australia CEO Craig Tiley recently flagged the possibility that daily crowd numbers for the Open could be increased due to the state's success in combating COVID-19.

BHP restarts ore tests five years after fatal dam burst

The Australian Financial Review - Page 18 : 17 December 2020 - Original article by Peter Ker - PortMac.News Summary

BHP has advised that production at its Samarco iron ore joint venture in Brazil will gradually resume in coming weeks.

A BHP spokeswoman has indicated that the process of commissioning and testing a new filtration plant and ore concentrator at Samarco has begun, and the project will now use a dry stacking system to dispose of tailings.

BHP and Vale have paid out more than $2.6bn in compensation and remediation to date via the Renova Foundation, which was established in the wake of the tailings dam collapse in November 2015.

Rio Tinto open to Chinese steel makers' price complaints

The Australian Financial Review - Page 4 : 17 December 2020 - Original article by James Thomson, Peter Ker - PortMac.News Summary

The China Iron & Steel Association has called for a new iron ore pricing mechanism, arguing that the market-based system that has been used for a decade is 'broken'.

The CISA recently called for regulatory intervention in response to a surge in the iron ore price, which reached a nine-year high earlier in December.

Rio Tinto has signalled that it is open to changes to the market-based pricing mechanism, which replaced the traditional system of annual price negotiations in 2010.

Costs rise for Rio's Oyu Tolgoi expansion

The Australian - Page 16 : 17 December 2020 - Original article by Perry Williams - PortMac.News Summary

Rio Tinto has advised that the underground expansion of the Oyu Tolgoi copper mine in Mongolia will cost $US6.75bn and is slated to be completed by October 2022.

This is some two years behind schedule and more than 27 per cent higher than forecast when the expansion project was approved in 2016.

Rio Tinto has cautioned that this could have to be revised again if the COVID-19 pandemic worsens.

Oyu Tolgoi's open pit and underground operations are forecast to produce 480,000 tonnes of copper annually between 2028 and 2036. The open pit produced 146,300 tonnes in 2019.

Australia set for new LNG export record

The Australian Financial Review - Page 15 & 18 : 17 December 2020 - Original article by Angela Macdonald-Smith - PortMac.News Summary

EnergyQuest has forecast that Australia's LNG export volumes could rise to a record 78 million tonnes in 2020.

The consultancy notes that the sector's total exports for the first 11 months of the year were 1.2 million tonnes higher than the same period in 2019.

However, the industry's full-year export revenue is set to fall due to a decline in the LNG price. Meanwhile, EnergyQuest CEO Graeme Bethune says the Chinese government is unlikely to extend its trade sanctions to Australia's LNG exports, noting that demand for gas in China is high at this time of year.