New report by the Task Force on Climate-related Financial Disclosures (TCD), a G20 initiative led by Governor of the Bank of England and former Mayor of NYC Michael Bloomberg, outlines how companies should disclose climate-related information in their financial filings, with the aim of allowing economies to properly value climate-related risks https://www.theguardian.com/environment/2017/jun/29/banks-should-disclose-lending-to-companies-with-carbon-related-risks-says-report Report recommends that…… Continue reading Banks should disclose lending to companies with carbon-related risks
Former board member John Edwards: RBA could increase interest rates 8 times in the next 2 years Support: RBA probably considering a program of rate increases given its forecasts for inflation returning to target and economic growth to accelerate to 3% against a stronger global backdrop Theorising that the long-term cash rate is about 3.5%…… Continue reading Conflict over predictions of RBA rate rises
http://www.oecd.org/eco/outlook/economic-forecast-summary-australia-oecd-economic-outlook-june-2017.pdf Economic growth projected to increase gradually and reach almost 3% by 2018 Drag on growth from declining resource-sector investment will fade and gathering momentum outside the resource sector will support wage and employment growth, thus boosting consumer spending Tightening labour and product markets will bring inflation up from current low levels Predict the RBA…… Continue reading OECD June Forecast for Australia
http://www.economist.com/blogs/freeexchange/2017/06/immigration-economics https://www.cgdev.org/blog/what-mariel-boatlift-cuban-refugees-can-teach-us-about-economics-immigration Innately difficult to quantify: almost impossible to separate cause and effect – if a country with high rates of immigration also sees strong wage growth, there can be no assumption immigrants are boosting wage. It may be instead immigrants choosing to move to strong economies already encountering wage increases, or forecast for…… Continue reading The effect of immigrants on native wages
http://www.theaustralian.com.au/business/economics/unemployment-falls-to-55pc-in-may-as-figures-beat-expectations/news-story/5ede0c480628e1a16a6d0275c3afab26 Australia’s unemployment rate dropped to a four-year low in May to a lower than expected seasonally adjusted 5.5% from 5.7% in April Lowest jobless rate since February 2013 Seasonally adjusted workforce participation rate rose to 64.9% in May from 64.8% n April Supports view that there is an underlying strength in the economy despite…… Continue reading Unemployment falls to 5.5% in May
http://www.economist.com/news/finance-and-economics/21721649-american-share-valuations-are-higher-now-eve-financial May 2007: cyclically adjusted price-earnings ratio (CAPE), a measure that averages profits over ten years, was 27.6 for American equities. By March 2009 the CAPE had fallen by more than half. Central banks then took action, slashing interest rates and buying assets via quantitative easing (QE) Stockmarkets rapidly recovered and the S&P is now…… Continue reading American share valuations: overpriced?
Deutsche Bank: predicts S&P 500 has had 10 out of 11 days with a move of less than 0.2%, the quietest period since 1927 The volatility index (Vix) fell to a 23 year low after the French election result – a striking contrast to the political turmoil of the Trump administration, North Korea tensions, and…… Continue reading Recent complacency in financial markets