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2019 September Quarter Review
Read more: 2019 September Quarter ReviewEconomic Overview It was a mixed quarter and economic data reflected that. Developed markets making small gains while emerging markets fell. The US-China trade dispute rumbled on, as did global growth concerns, but central banks remained supportive with the US, Australian and European Central Banks cutting interest rates throughout the quarter. US economic data was mostly stable. Unemployment held at 3.7%, with wage growth in August stronger than anticipated. However, new non-farm job additions were lower than expected in August, at 130,000 versus predictions of 158,000. Consumer confidence also weakened. The US yield curve inverted, a phenomenon which often precedes…
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A Shock from The Electric Car Revolution
Read more: A Shock from The Electric Car RevolutionThey were the subject of much derision at the last federal election. Before you say the Labor party, no. Electric cars. What’s powering them (besides electricity)? Batteries. Charge them up and away you go – hopefully for a few hundred kms. Most of the battery focus has centered on the lithium-ion battery. There’s no need to get too deep into various battery chemistries, but some of the minerals and metals required to make the battery are lithium, nickel, cobalt, manganese and graphite. The race to manufacture the batteries has resulted in the construction of a significant number of battery mega…
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More Stakeholders at The Table
Read more: More Stakeholders at The TableShareholders aren’t everything. That sounds like a concerning statement to hear if you’re a shareholder. It might be the sort of thing you’d hear said by less than business friendly types. Hippies, socialists, gasp… millennials! Well no. It was essentially the message that came out of the Business Roundtable last month as they released their Principles of Corporate Governance. The Business Roundtable? Who are they? Business Roundtable is an association of chief executive officers of America’s leading companies working to promote a thriving U.S. economy and expanded opportunity for all Americans through sound public policy. Not exactly the socialist collective and…
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The Legacy of Unprofessionalism
Read more: The Legacy of UnprofessionalismTrust comes naturally to some professions. Take a survey from any country and there will inevitably be a consistent top three in the trusted category: nurses, firefighters and doctors. It makes sense. At their core we have to trust these professions with our health and our safety. Doctors and nurses also provide guidance and comfort in times of need. Down at the bottom? Car salesmen, real estate agents and politicians. These three are primarily transactional relationships. The first two rely on making a sale to ensure their continued existence. It’s obvious there’s some self-interest there, but stories of unethical behaviour…
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Optimism Is the Only Realism
Read more: Optimism Is the Only RealismA ‘3% plunge on the Dow Jones Index’ is ‘sparking fear that the US is on the verge of another recession as ‘more than than 60 billion of wealth was burnt’ on the Australian sharemarket. One analyst said there was ‘a plausible scenario in which the U.S. stock market now collapses by another 70%’ and former US Treasury Secretary, Larry Summers tweeted ‘as in August 1997, 1998, 2007 and 2008 we could be in the early stage of a very serious situation.’ As this paragraph highlights there’s a lot of fear about what happens next in financial markets and across…
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