Today's News - Wednesday 15 July 2020
Today's News - Wednesday 14 July 2020
Our Backyard
Figures released by the Australian Bureau of Statistics today show total payroll jobs at the end of June were still 5.7 per cent below mid-March when Australia recorded its 100th COVID-19 case. Bjorn Jarvis, head of labour statistics at the ABS, said” Since the low in mid-April, total payroll jobs have increased by 3.3 per cent”. “By the end of June, around 35 per cent of payroll jobs initially lost had been regained,” Mr Jarvis said. Payroll jobs worked by females recovered through June (recording a 0.8 per cent increase compared to a 0.1 per cent decrease for males). However, total female job losses since mid-March were still greater, at 6.0 per cent, compared to 5.4 per cent for males.
Payroll jobs worked by people under 20 recovered more than for any other age group through June, increasing by 11.3 per cent.
Latest research by ANZ and Roy Morgan shows consumer confidence fell 0.5 per cent in the last week — its third weekly decline. Its report noted deteriorating conditions in Melbourne are driving the anxiety, with economic sentiment conditions falling 3.4 per cent over the week.
A 170-year-old border anomaly at the crossroads of three states has left residents of a tiny outback community in limbo amid coronavirus restrictions — with one local now calling for the line to be redrawn. The slight dogleg in the otherwise straight boundary near the junction of South Australia, Victoria and New South Wales might not look like much, but it caused one of Australia's longest-running border disputes. This becomes complex for towns caught in between restrictions between Victoria and South Australia.
South Australian Premier Steven Marshall has announced that restrictions on travel from New South Wales and the ACT will no longer ease next week as planned because of the ongoing coronavirus threat. Visitors from those states were to be allowed into South Australia without quarantining from July 20, but that is no longer the case. Mr Marshall said the state's transition committee had decided there is too much uncertainty around the COVID-19 situation in New South Wales to open the borders at this stage.
Australian energy giant Woodside Petroleum has wiped billions of dollars off the value of its assets and reset price forecasts for the years ahead, giving the strongest indication yet of the severity and longer-term impact of coronavirus across the nation's oil and gas sector. Woodside on Tuesday revealed $US4.37 billion ($6.3 billion) in write-downs and charges that have left no parts of the business unscathed, with impairments on all its Western Australian oil and gas assets, liquefied natural gas (LNG) plants and exploration licences. It follows a wave of similar revisions by some of the world's biggest oil producers including BP and Shell due to the crippling impact of coronavirus restrictions gutting oil demand and prices, and the growing realisation that the economic shock of the pandemic could last for years to come. ASX-listed Oil Search on Monday announced a $570 million write-down and indicated it could abandon some exploratory drilling projects in Papua New Guinea.
Almost 350,000 Australians have double dipped into their retirement savings claiming ongoing financial hardship due to the coronavirus pandemic. Figures released by the Australian Prudential Regulation Authority show 345,000 people have made repeat applications to access their superannuation early, for an average payment $8904. The early release of super was implemented by the federal government as a financial measure to support Australians during the coronavirus pandemic. It gives savers the ability to request up to $10,000 in both the 2020 and 2021 financial years. As of July 5, $19.1bn had been paid to approximately 2.7 million account holders, with APRA estimating new requests will sap the superannuation sector of roughly $23.3bn.
The chief executive of ME Bank has resigned, after more than a decade running the industry super fund-owned bank. Jamie McPhee will leave the bank at the end of the month, with the current chief financial officer Adam Crane to take the reins before a permanent appointment is made. ME Bank faced backlash in May over changes to mortgage redraw facilities without informing customers first.
Westpac has ended a near six-month job search to replace its chief financial officer by appointing KPMG partner Michael Rowland to the top role. Mr Rowland will take up the position later this year, closing a recruitment drive sparked by Westpac’s 2019 AUSTRAC scandal that thrust then CFO Peter King to take helm of the country’s second largest bank. Mr King was elevated to chief executive after Brian Hartzer’s abrupt resignation from the banking group following revelations Westpac had committed 23 million alleged breaches of financial crimes law.
Cabin crews of Australia’s major airlines have warned the industry is not prepared to deal with the potential onslaught of a second coronavirus outbreak. In a submission to a federal Senate committee into COVID-19, the Flight Attendants’ Association of Australia has flagged airlines were not providing sufficient personal protective equipment to both employees and passengers. The association has slammed the initial handling of the pandemic by Qantas and the government, saying responses were “reactive” instead of ensuring aircrafts did not become a virus hot spot.
Builders are experiencing a major spike in sales following the Federal Government's announcement of its $688 million HomeBuilder program. The scheme was announced in early June to stimulate the industry after the impacts of COVID-19. Chief Economist at the Housing Industry Association Tim Reardon said new home sales had risen by almost 78 per cent in June. Builders are bracing for a lull as fears land shortage could slow the momentum.
A group of Victorians kicked off their week with a ridiculously pricey party after police busted 11 of them gathered in the same house. Police found the group gathered at a short term rental apartment in Point Cook, in Melbourne’s southwest, for a party last night. Each partygoer was slapped with the usual $1652 fine from Victoria Police, totalling a whopping $18,172 for the group.
NSW Police has slammed Krispy Kreme for giving away hundreds of thousands of doughnuts during the pandemic, saying the crowd-attracting promotion was “nonsensical” and “defies logic”. Krispy Kreme Australia gave away 420,000 free doughnuts on Monday to anyone who missed out on their birthday due to coronavirus restrictions. Australians whose birthday fell between March 13 and July 13 could go into participating Krispy Kreme stores to redeem the offer of a dozen free Original Glazed. But the giveaway resulted in long traffic queues and massive lines of people standing outside multiple stores in close proximity.
Westpac has warned customers of two separate scams currently targeting account holders online. An email with the subject line “Important Message About Your Online Banking” has been sent by scammers to the bank’s customers, with Westpac urging Aussies to be wary.
The newly released 'Palace letters' have revealed then governor-general Sir John Kerr sacked the Whitlam government in 1975 without giving advance notice to the Queen, because "it was better for Her Majesty not to know". The 211 letters exchanged between Sir John and Buckingham Palace at the time of the dismissal were today released online by the National Archives of Australia, in Canberra. "I should say that I decided to take the step I took without informing the Palace in advance because, under the Constitution, the responsibility is mine and I was of the opinion that it was better for Her Majesty not to know in advance," Sir John wrote. Then, more than a week after the dismissal, on November 20, Sir John clarified further, writing that he had to act without giving Mr Whitlam a chance to call an election, because he feared he would be sacked himself, which would have put the Queen in a difficult position.
Three new primary schools and one special school will be built in high population areas of Queensland's south-east, the Government has announced in State Parliament. It is estimated the schools will cost $245 million and be open by 2023. Two of the primary schools will be located at North Maclean in Logan and at Caloundra South. It's hoped another primary school in Brisbane's inner-west will ease overcrowding at nearby schools.
Explosive experts have reportedly defused a live bomb which was found on a footpath in the town of Caboolture in southeast Queensland earlier yesterday. According to the Courier Mail, the potentially lethal weapon was filled with “ball bearings and firearm ammunition”. It was detected on a pedestrian path located between Caboolture Hospital and Caboolture Railway Station at around 12.30pm this afternoon. It was dismantled by the specially-trained Explosive Ordnance Response Team (EORT) in an operation which lasted several hours.
A teenager who became a paraplegic when she fell out of a moving taxi during an ill-fated attempt to rob the driver at knifepoint has lost her appeal bid for damages. It was SW’s 15th birthday on November 28, 2015 when she and three friends got into a taxi in Ambarvale in Sydney’s southwest just before 10pm and asked the driver, Md Abdus Khaja, to take them to nearby Campbelltown. When he pulled over, expecting the girls to pay the $14 fare and leave, Mr Khaja said SW instead produced a kitchen knife from her jumper pocket and demanded money. A struggle ensued, during which SW fell out of the passenger side door and was run over by the rear wheels as Mr Khaja accelerated away. She suffered catastrophic injuries to her spine.
Three employees and the southwest Queensland sawmilling company they worked for have been hit with fines totalling $17,500 after they pleaded guilty to 10 counts of stealing trees from a state forest. The men appeared in the Charleville Magistrates Court earlier this year, pleading guilty to stealing state-owned timber worth about $12,000 between December 2018 and August 2019. As a result, the company and its employees have been banned from further harvesting operations.
World News
The British Government has banned Huawei from its 5G network and will force telcos to replace all the company's existing infrastructure in a move that could cost up to 2 billion pounds ($3.6 billion). The move comes after sustained pressure from the United States, Britain's most important intelligence partner, which has been pushing the UK to reverse Prime Minister Boris Johnson's January decision to grant Huawei a limited role in the country's 5G rollout.
China's surging demand for iron ore and coal worldwide has boosted Australian exports despite the rising animosity between the two countries. The surge illustrates a two-track trade relationship developing between the economies: imports critical to China's infrastructure stimulus are climbing while trade bans are imposed on beef, barley and education, which can be sourced from elsewhere.
Iron ore imports into China grew by 10 per cent over the first half of the year, coal by 13 per cent and LNG by 3 per cent. Tuesday's data from China's customs department does not breakdown commodity imports by country but Australia accounts for up to 60 per cent of China's annual iron ore imports and more than 30 per cent of its coal imports. Overall imports across all sectors from Australia fell by 0.1 per cent in the year to June.
China has sanctioned a group of prominent US senators and officials in retaliation for Washington stepping up its attack over human rights abuses against ethnic minorities in Xinjiang. But the US immediately returned fire, with Secretary of State Mike Pompeo issuing a statement rejecting almost all of China's claims in the South China Sea, exacerbating tensions over one of Asia's most contentious foreign policy issues. The announcement was made by the Chinese Foreign Ministry - days after the US imposed its own sanctions against a number of Beijing officials.
Chile's state-owned Codelco, the world's largest copper producer, has registered a total 3215 COVID-19 infections and nine deaths due to the pandemic, the chairman of the firm said on Monday, local time, as pressure rises on production of the red metal. Board Chairman Juan Benavides said 2473 workers had already recovered while 37 remained hospitalised, according to comments made to a mining commission made up of lower-house MPs and confirmed by the mining giant.
California's Governor has ordered a retreat from the state's economic reopening as coronavirus cases soar, shutting bars and banning indoor restaurant dining statewide, while closing churches, gyms and hair salons in the hardest-hit counties. Governor Gavin Newsom acted as COVID-19 cases strained hospitals in several rural counties and as infections mounted in Los Angeles and parts of the San Francisco Bay Area. California recorded 8,358 new coronavirus cases on Sunday. The statewide order follows a shutdown earlier this month affecting only the worst-hit areas of the state.
Polish President Andrzej Duda has won five more years in power on a socially conservative, religious platform in a closely fought election that makes renewed confrontation with the European Union's executive likely. Final results from Sunday's presidential election runoff showed Mr Duda, 48, won with 51.03 per cent of the vote, the National Election Commission said.
https://www.abc.net.au/news/2020-07-14/ipolish-conservative-duda-re-elected-president/12451926
New Zealand's new Opposition Leader has resigned just weeks after being elected to the role, and just months from a general election, citing health reasons. National Party leader Todd Muller issued a statement saying he had reflected on his experience of recent weeks and it was clear to him he was not the best person to be opposition leader and National Party leader.
https://www.abc.net.au/news/2020-07-14/new-zealand-opposition-leader-todd-muller-quits/12452364
Private hospitals and clinics in Indonesia are charging patients up to $1450 for a coronavirus test, more than three times the monthly minimum wage. Indonesia President Joko Widodo on Monday demanded testing rates increase to 30,000 polymerase chain reaction (PCR) tests a day, a 50 per cent increase, and for more labs to be opened in hard-hit provinces including Jakarta, East and West Java. Coronavirus testing is free in Indonesia but only if a patient presents with symptoms at a government hospital. Access to PCR testing can be difficult to obtain and involve delays of up to a couple of weeks. The World Health Organisation has called on Indonesia to step up its PCR testing rates.
Former MythBusters co-host Grant Imahara has died suddenly aged 49 after reportedly suffering a brain aneurysm. Imahara joined MythBusters in 2005, two years after the show started. He was a member of the "build team" alongside Tory Belleci and Kari Byron, and helped design experiments for the show.
https://www.abc.net.au/news/2020-07-14/mythbusters-host-grant-imahara-dead/12454370
Australian special forces killed up to 10 unarmed Afghan civilians during a 2012 raid in Kandahar Province, ABC Investigations can reveal. The raid is believed to be the worst one-day death toll uncovered to date of alleged unlawful killings by Australian soldiers in Afghanistan. Afghan witnesses and Australian sources have told the ABC that the Special Air Service Regiment (SAS) operation left a number of Taliban dead. The Inspector-General of the Australian Defence Force will soon deliver findings on an investigation into alleged war crimes in Afghanistan.
Elon Musk is now richer than Warren Buffett. The fortune of Tesla's chief executive officer rose $US6.1 billion ($8.8 billion) on Friday (US time), according to the Bloomberg Billionaires Index, after the carmaker's stock surged 11 per cent. Musk is now the world's seventh-richest person, also ahead of tech titans Larry Ellison and Sergey Brin.
Covid-19
Victoria's coronavirus crisis has worsened further after another 270 cases were detected in the past 24 hours, and another two people died in hospital. The deaths of the man and the woman, aged in their 80s, take the state's death toll to 26 and the national toll to 110. The growth in cases represents Victoria's third-highest daily increase since the start of the pandemic, despite some Melbourne "hot zones" enduring almost a fortnight of a stage-three lockdown.
https://www.abc.net.au/news/2020-07-14/victoria-coronavirus-cases-melbourne-270-new-cases/12451968
Queensland Health has declared coronavirus hotspots in several areas of New South Wales after a cluster of cases in Sydney. Any non-Queensland residents who have visited, or visit, the Campbelltown and Liverpool city areas will not be allowed entry into Queensland from midday today. It follows a cluster of 28 cases connected to the Crossroads Hotel on the Hume Highway in south-west Sydney. Residents who lie about being in a coronavirus hotspot could now face up to six months in prison.
https://www.abc.net.au/news/2020-07-14/coronavirus-queensland-hotspots-declared-nsw/12445814
- A top Florida infectious diseases doctor says the state's rapidly increasing number of COVID-19 cases is turning Miami into the new "epicentre of the pandemic".
- Woolworths has confirmed a staff member from its Bowral store in the NSW southern highlands has tested positive to COVID-19. The store said the employee in question last worked on Sunday but did not show any symptoms at the time.
- Governments in the UK and France will order people to wear face masks while in shops. On Monday morning, UK Prime Minister Boris Johnson has previously urged people to wear them but has since announced his Government would make it compulsory.
- The largest financial company in the United States has set aside billions of dollars due to the coronavirus pandemic. JPMorgan Chase has set aside $US8.3 billion ($11.9 billion) during the first quarter of the year and another $US10.5 billion ($15.1 billion) last quarter.
- Philippine authorities and police will carry out house-to-house searches for COVID-19 patients to prevent wider transmission.
- Israel's Health Ministry confirmed 1,681 new coronavirus cases on Tuesday, a record increase. The nation has recorded a total of 41,235 cases of the coronavirus.
Property News
Non-bank lenders are tightening the reins and have identified a range of property sectors where they will refuse provide to loans for developers and owners in coming months. In a sector that provides lending at higher prices for the higher risk developments, the global pandemic has led many to re-assess their customer profile. Lending in the non-bank sector in Australia is estimated to be worth more than $50 billion. It comes as the level of sales transactions across the office, residential and retail sectors has fallen dramatically and while some lending is still occurring, it is only for high quality and well-located developments.
Chifley Securities, which has about 140 lenders as clients offering loans from $15 million to $50 million, says it has gone from looking at lending on a geographical basis to an asset class focus. As the economy slows Chifley has identified large scale, greenfield residential developments, commercial offices and retail spaces, and hospitality focused commercial and industrial premises as where it will not provide financing in the second half of 2020.
Sales:
- A business owner wanting to occupy a shop and office at 526 La Trobe Street, Melbourne has paid $3.55 million on a tight 3.56 per cent yield for the privilege. The property gets net rental of $126,473 per annum.
- An investor has paid $745,000 on a 5.4 per cent yield for a strata shop at 515 Hampton Street, Hampton leased to Branon Real Estate that provides income of $40,365 per annum net.
- An older 1163 sq m office/ warehouse has sold prior to auction for $1.3 million. Located at 18 Century Drive, Braeside, the property on two titles sold to an owner occupier in a deal.
Leases
- Peak Chiropractic as the new tenant for 405 Canterbury Road, Surrey Hills. The business took a five-year lease plus option at a starting rent of $90,000 a year. The building is undergoing a significant renovation.
- An online florist has leased 21 Studley Street, Abbotsford for $34,000 per annum on a three-year lease. The boutique 105 sq m warehouse-style studio was fully self-contained and included on-site parking for one vehicle.
- Aeastudio & Lash Squad will open a new parlour in shop 2 and 3 at 556 North Road, Ormond, on annual rent of $25,000. The 103 sq m space was leased for two years.
- Financial planners Money Lab will move into level 2 and 3 at 29-31 Izett Street, Prahran, after signing a lease. The firm took a six-year lease valued at more than $1.5 million over the 650 sq m in the uber cool warehouse conversion, which boasts a red swimming pool and an expansive open-air terrace.
https://www.smh.com.au/business/companies/la-trobe-street-shop-sells-for-3-5m-20200713-p55bke.html
Market News
Yesterday, The Australian sharemarket has slipped after recent gains coinciding with economic sentiment indicators signalling a long road to recovery for the Australian economy. The benchmark S&P/ASX200 fell 36 points, or 0.6 per cent to 5941.1, with losses fuelled by strong declines in technology stocks. The broader All Ordinaries index shed 44 points, or 0.7 per cent to 6045.5, while the Australian dollar at the end of session was up 0.16 per cent to US69.50 cents.
NAB’s monthly survey showed business conditions for June had risen 17 points to an index position of negative seven points. Debt collectors Credit Corp experienced the largest upswing, rising 6.7 per cent to $16.29 per share.
All major banks ended the session down, with the country’s largest retail bank, the Commonwealth, posting a 0.5 per cent fall to $71.73 per share. Westpac fell 0.8 per cent to $17.83 per share, ANZ dropped by 1.2 per cent to $18.42 and NAB closed the day down 0.4 per cent to $18.10. Australia’s major miners made some ground with Rio Tinto’s share price rising 1.4 per cent to $101.25, while BHP rose 0.1 per cent to $37.08 per share.
Fortescue Metals also rose 0.1 per cent to $15.51 per share at the close, while Newcrest Mining sharply fell 2.5 per cent to $32.50 per share.
Gaming group Aristocrat rose 2.5 per cent to $25.09 per share, while Star Entertainment Group suffered a 2.3 fall to $2.63 after recent revelations of a potential COVID-19 cluster outbreak at its Sydney Star casino.
Wesfarmers’ stock fell 0.15 per cent to $45.98 per share, while Woolworths ended the session down 0.21 per cent to $38.41 each.
Shares in buy now, pay later company Sezzle have skyrocketed since falling to a 35-cent low on March 23. But just as Sezzle rode the wave down during C19, so too did it surge higher to increase an eyewatering 2,500 per cent to $8.50 a share earlier this week.
Michael Tran
Director Relationships
Judo Bank