The UK’s “Open Banking” Initiative Went Live Last Saturday

Open Banking, where customers can elect to share their banking transaction information with third parties went live in the UK. This initiative is designed to lift completion across financial services, and of course in Australia, there are early moves in this direction, though the shape of those here are not yet clear. An issues paper … Continue reading “The UK’s “Open Banking” Initiative Went Live Last Saturday”

The Game Is Up – The Property Imperative Weekly 13 Jan 2018

The game is up. Major changes are rippling through the property market, with continued pressure on many households, so we examine the latest data. Welcome to the Property Imperative weekly to 13 January 2018. Watch the video or read the transcript. In this week’s review of the latest finance and property news, we start with … Continue reading “The Game Is Up – The Property Imperative Weekly 13 Jan 2018”

RBA Charts Tell A Tale Of Household Woe

The latest RBA chart pack, a distillation of data to the end of the year, contains a few gems, which underscore some of the tensions in the consumer sector. First, relative the the ultra-low cash rate, actual mortgage rates are rising – no surprise given the rise in mortgage stress we are registering. Next, home … Continue reading “RBA Charts Tell A Tale Of Household Woe”

US Financial Stability In The Spotlight

The US Financial Stability Oversight Council has published their 2017 Annual Report. Their mandate under the Dodd-Frank Act is to identify risks to the financial stability of the US, promote market discipline and respond to emerging threats. At more than 150 pages, its is a long read, but well worth the effort. Also compare and … Continue reading “US Financial Stability In The Spotlight”

Is Record High Consumer Debt a Boon or Bane?

From The St.Louis Fed on The Economy Blog. Amidst of lot of captivating headlines over the last few months, one may have missed the news that consumer debt has hit an all-time high of 26 percent of disposable income, as seen in the chart below.  In just the past five years, consumer debt (all … Continue reading “Is Record High Consumer Debt a Boon or Bane?”

Safe as Houses? Not if You Live in Australia

An interesting perspective via a press release from online broker FXB Trading. Whilst they are pushing their “hedge strategy” for Australian property, drawing parallels with the US crash of 2007; the key points they make are important and largely align with our view of the local property market.  If they are right, recent price falls … Continue reading “Safe as Houses? Not if You Live in Australia”

First Time Buyers Keep The Property Market Afloat – The Property Imperative Weekly – 9th Dec 2017

First Time Buyers are keeping the property ship afloat for now, but what are the consequences? Welcome to the Property Imperative weekly to 9th December 2017. Watch the video, or read the transcript. In our weekly digest of property and finance news, we start this week with the latest housing lending finance from the ABS. … Continue reading “First Time Buyers Keep The Property Market Afloat – The Property Imperative Weekly – 9th Dec 2017”

GDP Sags Below Expectation In September 2017

The ABS released the National Accounts to September 2017 today.  The expectation was a 0.7% lift in GDP, but it came in 0.6%. This gives an annual read of 2.3%, well short of the hoped for 3%+. Seasonally adjusted,  growth was 2.8%. Business investment apart, this is a weak and concerning result.  The terms of … Continue reading “GDP Sags Below Expectation In September 2017”

Walking The Tightrope – The Property Imperative Weekly 18 Nov 2017

A really mixed bag of news this week, with stronger business and employment data, lower mortgage defaults and yet weak wage growth, and more evidence of the pressure on households. We pick over the coals and try to make sense of what’s going on.  Welcome to the Property Imperative Weekly to 18 November 2017. Watch … Continue reading “Walking The Tightrope – The Property Imperative Weekly 18 Nov 2017”

The ACT Is Another Country

The ABS has released their analysis of individual state accounts to Jun 2017. This includes an estimate of average gross household disposable income per capita. The variations across states are significant and interesting. Of note is the astronomical value, and trajectory of individuals in the ACT, relative to everywhere else.  In addition, we see a … Continue reading “The ACT Is Another Country”