Latest updates on Key Economic Indicators

Australian Dollar: $0.7740 USD (down $0.0030 USD)

Iron Ore Feb Spot Price (SGX): $164.97 USD (down $2.18 USD)

Oil Price (WTI): $52.92 USD (down $0.22 USD)

Gold Price: $1,853.16 (down $2.75 USD)

Dow Jones: 31,070.44 at 3.08 pm NY time (down 10.91 points on yesterday's close)

All changes compared to 7am yesterday.

US House of Representatives votes for second Donald Trump impeachment

The House of Representatives has voted 232 to 197 to impeach US President Donald Trump, the first US president to be impeached twice, formally charging him with inciting an insurrection.

One week after a violent mob of Mr Trump's supporters stormed the Capitol, a majority of politicians in the Democratic-controlled chamber voted in favour of impeachment, calling the incident a deadly assault on American democracy.

But it appears unlikely Mr Trump will be removed from office before his term ends.

Senate Majority Leader Mitch McConnell on Wednesday (local time) blocked a quick Senate impeachment trial for Mr Trump, but did not rule out that he might eventually vote to convict him.

Speaking After the vote, Mr McConnell said there was "no chance" the Senate would be able to hold a "fair or serious" trial on the impeachment of Mr Trump before president-elect Joe Biden is sworn in next week.

[See main PortMac.News story today for details]

Access to Pfizer vaccine 'limited'

The Australian - Page 4 : 14 January 2021 - Original article by Natasha Robinson - PortMac.News Summary

Australia's Chief Health Officer Paul Kelly has defended the federal government's decision to rely largely on AstraZeneca's COVID-19 vaccine, despite concerns about its efficacy rate.

The government has ordered about 50 million doses of the AstraZeneca vaccine and 10 million doses of the Pfizer vaccine.

Kelly says it has not been feasible to secure additional supplies of the Pfizer vaccine, adding that the AstraZeneca one will save lives and will be available in sufficient quantities to inoculate every Australian.

It can also be rolled out quickly as it can be stored at fridge temperature, and most of the doses will be produced in Australia.

Savings war chest to drive economic recovery

The Australian Financial Review - Page 1 & 6 : 14 January 2021 - Original article by John Kehoe PortMac.News Summary

Treasury estimates that the federal government's fiscal support measures will boost real GDP by 5% in 2020-21 and 4.5% in 2021-22.

Treasury expects a sharp rise in household savings during the pandemic to help boost the economy when the COVID-19 stimulus ends.

Data from the Australian Prudential Regulation Authority shows that household banking deposits increased by nearly $113bn during the first 11 months of 2020, while business deposits increased by around $104bn.

The figures will support the government's view that extending the JobKeeper wage subsidy scheme beyond March is not necessary.

Bosses want clarity on staff jab rules

The Australian - Page 1 & 5 : 14 January 2021 - Original article by Rosie Lewis - PortMac.News Summary

The issue of whether Australian employers have a legal right to require staff to receive a COVID-19 vaccination is attracting growing scrutiny.

Small Business & Family Enterprise Ombudsman Kate Carnell says the nat­ional cabinet should develop simple guidelines on the issue that can be used nationwide.

Sources have indicated that the federal government is working on vaccination guidelines for workers in high-risk sectors such as health and aged-care.

Blacklisting of China deals grows

The Australian Financial Review - Page 1 & 6 : 14 January 2021 - Original article by John Kehoe - PortMac.News Summary

Tensions between Australia and China are likely to increase in the wake of revelations that the federal government blocked a deal for a state-owned entity to underwrite EnergyAustralia's proposed $300 million gas power plant in New South Wales.

This follows the government's decision to reject a deal for a Chinese company to acquire construction firm Probuild.

The government is also believed to have blocked other Chinese companies from participating in infrastructure and energy projects.

Probuild shock 'To hit foreign deals'

The Australian - Page 13 & 14 : 14 January 2021 - Original article by Glenda Korporaal, Lisa Allen - PortMac.News Summary

Investment bankers have warned that the federal government's decision to block a Chinese bid for construction firm Probuild will deter all foreign investors from bidding for Australian assets.

Kidder Williams chairman David Williams says it now takes the Foreign Investment Review Board about six months to review proposed takeover deals from overseas bidders, which puts them at a competitive disadvantage compared with local bidders.

Property Council of Australia CEO Ken Morrison says the industry will consider the long-term implications of the Probuild decision on foreign investment in the local property sector.

Worker's choice of super or wage rise

The Australian Financial Review - Page 8 : 14 January 2021 - Original article by John Kehoe - PortMac.News Summary

The federal government is considering a range of options regarding superannuation ahead of the Budget in May.

The super guarantee is slated to rise to 10 per cent on 1 July, and the government is said to be looking at leaving at this level.

Other options that are under consideration include allowing workers to choose between a higher super contribution and an increase in their take-home pay, or extending the early-access scheme.

Industry Super Australia warns that allowing workers to opt for increased take-home pay will result in many paying more tax, as wages are typically taxed at a higher rate than compulsory super contributions.

FBI warns 'Mind-blowing' number of cases to result from US Capitol attack

abc.net.au - Page Online : 14 January 2021 - PortMac.News Summary

The Federal Bureau of Investigation is investigating a range of crimes arising from the recent storming of the US Capitol, including sedition, conspiracy and theft of national security information.

More than 70 people have been charged to date, and the FBI has advised that it has commenced at least 170 separate investigations into alleged offences commmited by the rioters.

The unprecedented violence resulted in the deaths of at least five people.

Investors await Biden stimulus

The Australian - Page 19 : 14 January 2021 - Original article by Gerard Cockburn - PortMac.News Summary

The Australian sharemarket posted a modest gain on 13 January, with the S&P/ASX 200 adding 0.11% to close at 6,686.6 points.

Fortescue Metals Group rose 0.16% to end the session at $25.17, Oil Search was up 6.2% at $4.44 and the Commonwealth Bank advanced one per cent to $85.97. However, Coles Group was down 2.4% at $17.96 and PolyNovo shed 9.2% to finish at $2.68.

Strategists tip shares to remain top performers

The Australian Financial Review - Page 27 : 14 January 2021 -Original article by Luke Housego - PortMac.News Summary

Financial market strategists are upbeat about the outlook for Australian and international shares in 2021.

Jason Steed of JP Morgan says factors such as monetary and fiscal stimulus and the rollout of COVID-19 vaccines will boost the sharemarket.

Hasan Tevfik of MST Marquee in turn says the market will be more earnings-driven than in 2020, while price-to-earnings multiples will be closer to their historical average.

The most bullish analysts expect the S&P/ASX 200 to rise to around 7,600 points in 2021.

Class action talk as Tyro eftpos outage leaves small business stranded

The Australian - Page 15 : 14 January 2021 - Original article by Cliona O'Dowd - PortMac.News Summary

Australian-listed Tyro Payments has revealed that some 30% of merchants that use its Eftpos terminals have been affected by the outage that began on 5 January.

Tyro had previously advised that 15% of merchants had been affected.

More than 6,000 merchants currently do not have access to any working Eftpos terminals, forcing them to accept cash transactions only.

Bannister Law has advised that it is looking at the option of a class action on behalf of merchants that have been hit by the outage.

Retail gets its swagger back on sales boom

The Australian - Page 13 & 14 : 14 January 2021 - Original article by Lachlan Moffet Gray - PortMac.News Summary

Premier Investments has advised that its pre-tax earnings for the first half of 2020-21 will be within the range of $221m and $233m, which is up to 85% higher than previously.

The listed retail group has advised that its overall sales have risen by 5% to $716.9m so far in the first half, while online sales have increased by 60% to $146.2m.

Shares in Premier closed 12.7% higher at $25.35 on 13 January; other retail stocks also rallied in response to the indications that the sector is recovering from the impact of COVID-19.

Google buries Aussie news in 'Experiment'

The Australian - Page 1 & 2 : 14 January 2021 - Original article by David Swan - PortMac.News Summary

Digital giant Google has reiterated that it is committed to a workable revenue-sharing code of conduct.

However, the company has revealed that it has undertaken experiments on its algorithms that have led to the content from some Australia media outlets not being displayed in search results.

A spokeswoman has indicated that the company conducts tens of thousands of experiments in Google Search each year, and the current experiments are aimed at measuring the impacts of news businesses and Google Search on each other.

She adds that these experiments will affect about one per cent of Google Search users in Australia.

Tech giant's shot across the bow may rebound

The Australian - Page 2 : 14 January 2021 - Original article by Adam Creighton - PortMac.News Summary

Google claims that its 'Experiments' are aimed at seeing how Australian users react to the removal of local news content from its search results.

However, the move is clearly a threat rather than an experiment, ahead of upcoming negotiations over a revenue-sharing deal with news publishers.

Google's so-called experiment is a chilling demonstration of digital platforms' immense market power and their control over digital information. It is time that some of the immense profits they make from distributing news stories are returned to the producers of that content.

ACCC goes into battle against Facebook, Apple and Google

The Australian Financial Review - Page 1 & 2 : 14 January 2021 - Original article by Patrick Durkin - PortMac.News Summary

Australian Competition & Consumer Commission chairman Rod Sims has flagged more regulatory action against digital giants in 2021.

Amongst other things, he has identified the digital advertising and app markets as areas that the ACCC will target.

Sims will shortly release a report on Google's market power in Australia's online advertising market, which is likely to lead to further legal action.

The ACCC launched two consumer cases against Google in 2020 and one against Facebook. Sims also expects the revenue-sharing code of conduct with news publishers to be finalised in coming months.

Cinemas face 'Terminal' threat as Warner Bros trials streaming

The Australian Financial Review - Page 7 : 14 January 2021 - Original article by Larry Schlesinger - PortMac.News Summary

Warner Bros has revealed that its full slate of 2021 films will be released simultaneously in cinemas and on its HBO Max subscription video-on-demand platform.

Will Chapman of IBISWorld says the viability of cinemas could be at risk of rival Hollywood studios adopt this strategy, as people will simply choose to watch new films from the comfort of their home, but Warner Bros chairman Toby Emmerich has downplayed such concerns.

IBISWorld forecasts that cinema operators' revenue will rise by 1.1% in 2020-21, while subscription-based services' revenue will increase by 3.3%. HBO Max is not currently available in Australia.

We won't take your coal, says Beijing

The Australian - Page 1 & 2 : 14 January 2021 - Original article by Will Glasgow, Perry Williams - PortMac.News Summary

A total of 73 cargo ships carrying nearly eight million tonnes of Australian coal remain stranded off the Chinese coast due to the trade tensions between the two nations.

The Chinese government is believed to have informed the owners of this coal that none of the vessels will be permitted to unload their shipments in China, and that they will have to find alternative buyers.

Wood Mackenzie has warned that China's ban on Australian coal imports could potentially remain in place for the whole of 2021; the industry had hoped the ban would be lifted, as China usually resets its informal import quota at the start of each year.

China-Australia relations: Breaking free of dependency on Australian iron ore would take years, but where is China looking?

South China Morning Post - Page Online : 14 January 2021 - Original article by Su-Lin Tan - PortMac.News Summary

Paulo Salvador, the executive director of Brazilian port operator Grao Para Multimodal, says China should seek to diversify its iron ore supply in the wake of the ongoing trade tensions with Australia.

As previously reported by PortMac.News, China sources about 60% of its iron ore from Australia, but Salvador says there are huge untapped reserves of iron ore in Brazil.

There is limited scope for China to increase its domestic production of iron ore, as it is generally of a low grade that must be blended with higher-grade imported ore.

Several state-owned enterprises have stakes in the Simandou iron ore project in Guinea, but Kim Christie of Wood Mackenzie says initial production at Simandou is unlikely before 2026 at the earliest.