Latest updates on Key Economic Indicators

Australian Dollar: $0.7621 USD (up $0.0051 USD)

Iron Ore Jan Spot Price (SGX): $156.50 USD (up $1.86 USD)

Oil Price (WTI): $48.36 USD (up $0.56 USD)

Gold Price: $1,884.03( up $20.55 USD)

Dow Jones: 30,277.20 at 3.10pm NY time (up 122.66 points on yesterday's close)

All changes compared to 7am yesterday.

Sydney's northern beaches COVID-19 cluster jumps to 17 cases

The Guardian Australia - Page Online : 18 December 2020 - Original article by Michael McGowan, Ben Smee - PortMac.News Summary

New South Wales health authorities have urged residents of Sydney's Northern Beaches local government area to stay at home as much as possible for at least three days, after the region's COVID-19 cluster grew to 17.

Other Sydney residents have been advised to avoid travelling to the region, while health authorities have released a list of coronavirus 'hotspots'.

Meanwhile, other states and territories have announced new rules for travellers from New South Wales. Some will only require people who have visited the Northern Beaches area to quarantine for 14 days, but Western Australia will require all NSW residents who arrive in WA from 18 December to quarantine. 

New jobs drive budget recovery

The Australian - Page 1 & 4 : 18 December 2020 - Original article by Patrick Commins, Geoff Chambers - PortMac.News Summary

The federal government's Mid-Year Economic and Fiscal Outlook shows that the 2020-21 Budget deficit is now expected to be $197.7bn.

The $15.9bn improvement since the Budget was handed down on 6 October has been attributed to factors such as higher revenue due to the surge in the price of iron ore and the labour market's rebound in the wake of the coronavirus pandemic.

Treasury has upgraded its forecast for real GDP growth in 2020-21 to 0.75 per cent, compared with expectations in October of a 1.5% contraction.

ANZ economist Cherelle Murphy says a sustained economic recovery could potentially see the 2020-21 deficit fall towards $190bn when the government delivers its next Budget in May.

Now 59% of Australians expect 2021 will be 'better' than 2020, as Australia returns to normal

Market Research Update - Page Online : 18 December 2020 -Original article by Roy Morgan - PortMac.News Summary

A special Roy Morgan web survey has found that 59% of Australians now think 2021 will be 'better' than 2020, the highest positive view on the year ahead since 2009 following the Global Financial Crisis.

A further 17% say 2021 will be 'the same' as 2020, while a record low of 10% say 2021 will be 'worse' than 2020 and 14% don't know.

Australians are far more positive about the year ahead than they were a year ago, when only 12% said 2020 would be 'better' than 2019 and 40% said the year ahead would be 'worse'.

This comes as little surprise as people hope for a return to normality after the Covid-19 pandemic.

More men (59%) than women (58%) expect 2021 will be 'better' than 2020, although more men (12%) than women (8%) also say 2021 will be 'worse' than 2020.

Analysis by age group shows that 56% of 18-24 year olds expect 2021 will be 'better' than 2020, the lowest figure amongst all age groups. Some 60% of 25-34yr olds, 57% of 35-49yr olds and 61% of those aged 50-64 say 2021 will be 'better' than 2020.

This web survey was conducted with a representative cross-section of 1,008 Australians on November 12- 17.

Coalition: We've got vaccine firms covered

The Australian - Page 5 : 18 December 2020 - Original article by Tom Dusevic - PortMac.News Summary

The federal government has disclosed that Pfizer and Novavax have received legal indemnities for any potential side effects arising from their COVID-19 vaccines.

The government will buy 61 million doses of the two vaccines at a cost of $1.5bn.

The University of Queensland had also been granted an indemnity for its discontinued vaccine candidate. Meanwhile, medical experts say the government should set up a no-fault vaccine injury compensation scheme to encourage target groups to get vaccinated.

China shivers as coal ban sparks blackouts

The Australian - Page 1 & 8 : 18 December 2020 - Original article by Will Glasgow - PortMac.News Summary

China's clampdown on coal imports from Australia appears to be resulting in increased electricity shortages and blackouts.

Residents in Zhejiang - a province once ruled by Chinese President Xi Jinping - have been directed not to use heating until the temperature falls below 3C, while Shanghai's municipal government recently told shopping centres and office towers to turn off airconditioning and all unnecessary outdoor lighting.

Australia supplied 57% of China's imports of thermal coal in 2019, with thermal coal being used by coal-fired power stations.

Government dials up tactics on China

The Australian Financial Review - Page 3 : 18 December 2020 - Original article by John Kehoe, Jemima Whyte, Angus Grigg - PortMac.News Summary

Bermuda-based Digicel is the dominant mobile phone provider in a number of Pacific countries, including Papua New Guinea, Fiji and Samoa.

Digicel is owned by Irish billionaire Denis O'Brien, but its Asia-Pacific unit is struggling and a number of Chinese companies such as China Mobile are said to be keen to acquire it.

The Australian government is said to want to prevent this from happening and is understood to be considering financial support to local bidders.

O'Brien may use the current tensions between Australia and China as an attempt to get the best price for Digicel's Asia-Pacific unit.

Robodebt victim refunded more than $56,000 in erroneous Centrelink debts

The Guardian Australia - Page Online : 18 December 2020 - Original article by Luke Henriques-Gomes - PortMac.News Summary

The administration of refunds to victims of the federal government's botched robodebt scheme is expected to cost $20 million, according to information provided by Services Australia to Greens senator Rachel Siewert.

Services Australia has stated the largest refund it had provided up until 6 November was $56,828.37, while it has paid $9,959.51 to a deceased estate.

Over $5 million is owed to deceased estates, and Siewert asked Services Australia what process is in place to ensure this money is repaid.

Siewert claims there needs to be a royal commission into the federal government's "illegal robodebt program".

Qantas in legal win on wage subsidy

The Australian - Page 8 : 18 December 2020 - Original article by Ewin Hannan - PortMac.News Summary

Qantas has been successful in appealing a Federal Court ruling that it had been misusing the JobKeeper wage subsidy scheme.

The case had been brought against Qantas by unions, and the court win means it will not have to reimburse staff thousands of dollars.

Qantas welcomed the Full Federal Court's decision to uphold its appeal, as did Business Council of Australia CEO Jennifer Westacott.

She noted that companies have been applying JobKeeper rules in line with advice provided by the Australian Taxation Office, and that the court's initial ruling had created a lot of uncertainty.

Victoria running protection racket for Crown: Wilkie

The Australian Financial Review - Page 21 : 18 December 2020 - Original article by Elouise Fowler - PortMac.News Summary

Independent federal MP Andrew Wilkie says the Victorian government should have called for a state-based royal commission into Crown Resorts, rather than simply a review of its casino licence.

The state government has asked the Victorian Commission for Gambling & Liquor Regulation to bring forward its review of Crown's Melbourne casino licence by two years, in the wake of revelations arising from the New South Wales inquiry into Crown's suitability to operate its new Sydney casino at Barangaroo.

Stocks surge to ten-month high

The Australian - Page 23 : 18 December 2020 - Original article by Rebecca Le May - PortMac.News Summary

The Australian sharemarket rallied on 17 December, with the S&P/ASX 200 rising 1.16% to close at 6,756.7 points, its highest level since 25 February.

Fortescue Metals Group was up two per cent at $22.41, Woodside Petroleum added 2.97% to end the session at $23.56 and Westgold Resources was 6.29% higher at $2.79.

The ANZ Bank firmed 1.29% to finish at $23.58 and Afterpay rose 4.98% to $120.31.

Failed Xinja spruiked Dubai injection to prospective investors

The Australian Financial Review - Page 13 & 20 : 18 December 2020 - Original article by Michael Roddan, Jonathan Shapiro - PortMac.News Summary

Neobank Xinja recently announced it would be handing back its banking licence and return most its money to deposit holders by the end of 2020.

The company was unable to maintain paying the interest on $457 million in deposits without a loan product to offset its "cash burn" after a proposed investment from Dubai-based World Investments failed.

Xinja had in late March extended a $50 million capital raising after advising World Investments had injected $433 million into the company, despite the investment not existing.

Zip expands into Europe, Middle East

The Australian Financial Review - Page 20 : 18 December 2020 - Original article by James Eyers - PortMac.News Summary

Buy now, pay later lender Zip announced on 17 December that it had raised $120 million via an institutional placement, and that it was hoping to raise an extra $30 million via a share purchase plan.

Some of the funds raised will be used to acquire minority stakes in United Arab Emirates-based buy now, pay later provider Spotii and Twisto, a payment provider in Poland and Czech Republic.

However, most of the funds will be used to accelerate the growth of US buy now, pay later provider Quadpay, which Zip bought in September.

Arnott's bites into Freedom Foods

The Australian - Page 18 : 18 December 2020 - Original article by Eli Greenblat - PortMac.News Summary

The private equity-owned Arnott's Group has struck a deal to buy the cereals and snacks assets of Freedom Food Group for $20m.

The transactions includes Freedom Foods' manufacturing plants in New South Wales and Victoria, as well as all of its food brands with the exception of the Crankt Protein brand.

Freedom Foods recently announced writedowns of more than $590m and is pursuing a recapitalisation deal.

The company will seek shareholder approval to change its name. Its shares have been in a trading halt since June.

China tensions, travel bans hit A2 Milk

The Australian - Page 17 : 18 December 2020 - Original article by Jared Lynch - PortMac.News Summary

Dairy company brand A2 Milk has placed its shares in a trading halt, ahead of an expected revised earnings guidance on 21 December.

The company had reported in November that the lucrative Chinese daigou trade had "collapsed", and there is now concern that dairy products will be the next 'soft commodity' that China will target as part of its trade spat with Australia. A2 had previously advised investors that it expected full-year revenue to rise by between four and nine per cent, compared to the 33% increase it enjoyed in 2019.

2020 post-Christmas retail sales to grow 3.9% to $19.5 billion

Market Research Update - Page Online : 18 December 2020 - Original article by Roy Morgan - PortMac.News Summary

Roy Morgan's annual post-Christmas retail sales forecasts, conducted in conjunction with the Australian Retailers Association, project that Australians are set to spend $19.46 billion across retail stores during the post-Christmas trading period, an increase of 3.9% from a year ago.

The post-Christmas sales are expected to have a slightly higher rate of growth than the pre-Christmas sales, with the Australian economy continuing to recover and indicators such as ANZ-Roy Morgan Consumer Confidence continuing to increase.

The ABS Retail Sales data for October showed seasonally adjusted sales of $29.55 billion, up 1.4% on September and up 7.1% on a year ago.

The stronger-than-expected result for October has now boosted forecasts for pre-Christmas sales by over $440 million, and sales are now expected to increase by 3.6% on a year ago to $54.8 billion.

Growth in retail expenditure is predicted to be strongest in the two biggest categories of Food (up 10.5% from a year ago to over $8.5 billion), and Household Goods (up 12% to over $3.5 billion).

However, other categories are still feeling the impact of COVID-19; this is especially true for Hospitality for which post-Christmas spending is expected to decline by 16.7% to $2.2 billion.

There are also smaller declines expected for Apparel including Clothing, Footwear & Accessories (down 5.2% to $1.4 billion) and Department Stores (forecast to be 1.2% lower than a year ago at around $1.04 billion).

Nine raises earnings forecast as ads bounce

The Australian - Page 18 : 18 December 2020 - Original article by Lilly Vitorovich - PortMac.News Summary

An improvement in trading conditions since mid-November has prompted Nine Entertainment Company to upgrade its earnings guidance for the first half of 2020-21.

The media group now expects underlying earnings before specific items to rise by 40%, compared with expectations of 30%t growth just one month ago. Nine now expects its metropolitan TV advertising revenue to grow by one per cent year-on-year in the first half.

'Blokey' Nine's problem with senior women

The Australian - Page 1 & 8 : 18 December 2020 - Original article by James Madden - PortMac.News Summary

Nine Entertainment Company's marketing executive Lizzie is said to be the only woman on the media group's short-list of internal candidates to succeed CEO Hugh Marks.

Nine is believed to have commenced interviewing candidates for the role, with Marks having agreed to stay on until a successor is appointed.

Other internal candidates include Mike Sneesby, Chris Janz and Tom Malone. Michael Ebeid, Grant Blackley and Ciaran Davis are said to be among the external candidates that are under consideration.

Marks recently resigned in the wake of revelations about his relationship with Nine's former commercial director, Alexi Baker.

Schwartz Pro closes three titles, makes seven redundancies

Mumbrella - Page Online : 18 December 2020 - Original article by Brittney Rigby - PortMac.News Summary

Publishing group Schwartz has advised that it will discontinue the Australian Energy Daily, the Australian Finance Daily and the Australian Health Daily news websites, which were launched under the Schwartz Pro banner in May 2019.

The online titles adopted a paywall model, with limited content being available for free; Schwartz's publisher and founder Morry Schwartz has attributed the closure to the lack of sufficient support for the paid content.

Collusion claims to hit home

The Australian Financial Review - Page 13 : 18 December 2020 - Original article by Max Mason - PortMac.News Summary

Google and Facebook are facing allegations of collusion in the US advertising technology market in a case being launched against Google by Texas Attorney-General Ken Paxton.

Google says the allegations are baseless and it intends to fight the case. Australian Competition & Consumer Commission chairman Rod Sims says it is familiar with many of the concerns being raised in the US, and will be addressing a lot of them in its ad tech inquiry, which it is due to present to Treasury on 31 December.

Russia's doping ban halved but name and flag barred from next two Olympic

The Guardian - Page Online : 18 December 2020 - Original article by Sean Ingle - PortMac.News Summary

The World Anti-Doping Agency's four year ban on Russia taking part in major international sporting events has been reduced to two years by the court of arbitration for sport.

The ban was imposed after WADA found that Russia had manipulated laboratory data in an effort to prevent drug cheats being detected.

Despite the length of the ban being reduced, Russian teams will still not be able to compete in events such as the 2021 Tokyo Summer Olympic Games, the 2022 Beijing Winter Olympics and the 2022 soccer World Cup in Qatar.

Russian athletes who can show they were not involved in any doping scandal will be able to compete under a neutral flag.

Iron ore could save budget again in 2021

The Australian Financial Review - Page 6 : 18 December 2020 - Original article by Peter Ker, James Thomson, William McInnes - PortMac.News Summary

Marcel Thieliant of Capital Economists expects the iron ore price to be fetching around $US100 per tonne free-on-board by the end of the September quarter.

This is in contrast to the Treasury's revised forecast of $US55/tonne in the mid-year Budget update. Meanwhile, Morgans analyst Adrian Prendergast has warned that the China Iron & Steel Association's push for changes to the iron ore pricing mechanism may backfire; he contends that reinstating the system of annual contract negotiations could result in iron ore prices being higher for longer.