CANBERRA, Oct 15 - Australia's government hopes to return to a budget surplus in 2014, two years earlier than forecast, thanks to stronger tax receipts and reduced expenses, a newspaper said on Thursday.
The Australian Financial Review, citing no sources, said government officials have begun identifying higher tax receipts and spending cuts that could reduce government debt by A$60 billion and balance the budget.
Treasurer Wayne Swan said in May it would take six years to return to surplus as the government borrowed heavily for stimulus spending to help steer around a global recession.
Swan predicted the deficit would balloon to a record A$57.6 billion in 2009-10 and net debt would climb to 13.8 percent of GDP in 2014 before dropping to 3.7 percent of GDP in 2020.
The government hoped reduced borrowing could see net debt peak at A$130 billion rather than the A$188 billion originally expected, trimming more than A$2 billion off the government's annual interest bill, the paper said.
Swan and Prime Minister Kevin Rudd will give a mid-year budget update next month and are expected to revise the government's deficit position as well as forecasts for unemployment to reach 8.5 percent next year.
Australia this month became the first G20 nation to raise official interest rates in the aftermath of the international downturn, lifting the cash rate by 25 basis points to 3.25 percent and kicking off what most economists expect to be a gradual tightening to around 4.0 percent in 2010.
Wednesday, October 14, 2009
Tuesday, October 13, 2009
GLOBAL MARKETS - Asia stocks at 14-mth high before earnings
By Kevin Plumberg HONG KONG, Oct 13 (Reuters) - Asian stocks rose to a 14-month high and the U.S. dollar steadied on Tuesday, with some investors taking bets that third-quarter U.S. corporate earnings, expected to shrink for the ninth quarter, will be good enough to keep a rally going.
Major European stock markets were little changed in early trade ahead of company results this week from such bellwethers as Intel , Goldman Sachs and General Electric .
Investors are looking for stronger revenues to both confirm a global economic recovery and justify higher share price valuations after a seven-month-long equity rally. Profits last quarter were largely underpinned by cost cutting, not a rebound in consumer or business demand.
Oil prices rose for a fourth day after settling at a seven-week high on Monday. A steady 11 percent decline in the U.S. dollar against a basket of currencies since March has supported commodity prices.
Wall Street finished higher on Monday, but late session profit-taking made some investors unsure how to play results from Intel, the world's biggest chip maker, which is due to report after New York market close on Tuesday. The focus will be on the outlook for business spending given Intel's global reach.
"When Intel reports earnings, its outlook will likely be particularly in focus. If chipmakers were to say they expect demand to increase, that would mean the economy is on the mend," said Mitsuo Shimizu, deputy general manager at Cosmo Securities in Tokyo.
ASIAN ENERGY, FINANCIAL STOCKS GAIN After a long holiday weekend, Japan's Nikkei share average <.N225> rose 0.6 percent, with electronics and car maker stocks among the main supports to the index.
The MSCI index of Asia Pacific shares outside Japan rose 0.7 percent in choppy trading to the highest since Aug 12. The energy, financial and telecommunications sectors outperformed, while industrials, IT and consumer discretionary underperformed.
The all-country world equities index hit a 1-year high on Monday and looked set to test that high on Tuesday.
South Korea's benchmark KOSPI <.KS11> fell 0.7 percent, the worst performing major market in the region, on fears earnings may peak in the third quarter. A report that Norea Korea was preparing to fire more short-range missiles a day after it launched five off its east coast had a limited impact on financial markets.
This week 29 companies in the S&P 500 will post results. The entire S&P 500 is expected to show earnings shrank 25 percent in the third quarter compared with a year ago, though financials will reflect the highest growth rate of any industry, at 58 percent, Thomson Reuters research showed.
In currency markets, the U.S. dollar had a respite. The euro was largely unchanged at $1.4780 and the dollar was trading up 0.3 percent to 90.07 yen .
The ICE Futures U.S. dollar index <.DXY>, which gauges its value against a basket of six other major currencies, was up 0.1 percent but still close to a 14-month low hit last Thursday.
After a drubbing last week, U.S. Treasuries rose, with the benchmark 10-year yield slipping to 3.35 percent from 3.38 percent late on Friday in New York.
Minutes of the last Federal Reserve policy meeting due on Wednesday will be of particular interest given recent comments from Fed Chairman Ben Bernanke that were interpreted by dealers as being hawkish on interest rates.
U.S. crude for November delivery rose 11 cents to $73.38 a barrel , after rising for three straight sessions to settle at a seven-week high the previous day. Brent was at $71.56 .
A monthly report by producer group OPEC, due later in the day, as well as the direction of equity markets, could also offer clues on the outlook for global oil demand.
"Sentiment is moderately positive, and while fundamentals do not necessarily justify higher prices, the trend of a weaker dollar has been a big boost," said Sumisho Sano, General Manager of Research at SCM Securities in Tokyo.
Major European stock markets were little changed in early trade ahead of company results this week from such bellwethers as Intel , Goldman Sachs and General Electric .
Investors are looking for stronger revenues to both confirm a global economic recovery and justify higher share price valuations after a seven-month-long equity rally. Profits last quarter were largely underpinned by cost cutting, not a rebound in consumer or business demand.
Oil prices rose for a fourth day after settling at a seven-week high on Monday. A steady 11 percent decline in the U.S. dollar against a basket of currencies since March has supported commodity prices.
Wall Street finished higher on Monday, but late session profit-taking made some investors unsure how to play results from Intel, the world's biggest chip maker, which is due to report after New York market close on Tuesday. The focus will be on the outlook for business spending given Intel's global reach.
"When Intel reports earnings, its outlook will likely be particularly in focus. If chipmakers were to say they expect demand to increase, that would mean the economy is on the mend," said Mitsuo Shimizu, deputy general manager at Cosmo Securities in Tokyo.
ASIAN ENERGY, FINANCIAL STOCKS GAIN After a long holiday weekend, Japan's Nikkei share average <.N225> rose 0.6 percent, with electronics and car maker stocks among the main supports to the index.
The MSCI index of Asia Pacific shares outside Japan rose 0.7 percent in choppy trading to the highest since Aug 12. The energy, financial and telecommunications sectors outperformed, while industrials, IT and consumer discretionary underperformed.
The all-country world equities index hit a 1-year high on Monday and looked set to test that high on Tuesday.
South Korea's benchmark KOSPI <.KS11> fell 0.7 percent, the worst performing major market in the region, on fears earnings may peak in the third quarter. A report that Norea Korea was preparing to fire more short-range missiles a day after it launched five off its east coast had a limited impact on financial markets.
This week 29 companies in the S&P 500 will post results. The entire S&P 500 is expected to show earnings shrank 25 percent in the third quarter compared with a year ago, though financials will reflect the highest growth rate of any industry, at 58 percent, Thomson Reuters research showed.
In currency markets, the U.S. dollar had a respite. The euro was largely unchanged at $1.4780 and the dollar was trading up 0.3 percent to 90.07 yen .
The ICE Futures U.S. dollar index <.DXY>, which gauges its value against a basket of six other major currencies, was up 0.1 percent but still close to a 14-month low hit last Thursday.
After a drubbing last week, U.S. Treasuries rose, with the benchmark 10-year yield slipping to 3.35 percent from 3.38 percent late on Friday in New York.
Minutes of the last Federal Reserve policy meeting due on Wednesday will be of particular interest given recent comments from Fed Chairman Ben Bernanke that were interpreted by dealers as being hawkish on interest rates.
U.S. crude for November delivery rose 11 cents to $73.38 a barrel , after rising for three straight sessions to settle at a seven-week high the previous day. Brent was at $71.56 .
A monthly report by producer group OPEC, due later in the day, as well as the direction of equity markets, could also offer clues on the outlook for global oil demand.
"Sentiment is moderately positive, and while fundamentals do not necessarily justify higher prices, the trend of a weaker dollar has been a big boost," said Sumisho Sano, General Manager of Research at SCM Securities in Tokyo.
S.Korea president: world economic crisis not over
SEOUL, Oct 13 - South Korean President Lee Myung-bak said on Tuesday it was premature for the country to end its crisis management status, saying the world economy was not out of the woods yet.
"I believe our government must maintain its crisis management system for the time being because the world economy has not come out of the crisis yet," a statement from the presidential Blue House quoted Lee as saying during a scheduled cabinet meeting.
Later, Finance Minister Yoon Jeung-hyun told a parliamentary session government mortgage lending controls imposed last month were taking effect as real estate prices in the capital area were showing signs of stabilising.
"Real estate prices that had been growing fast in the capital areas are now stabilising after the introduction of DTI measures," he said, referring to the government's move last month to limit the amount of mortgage loans depending on the borrower's income.
The comments came after the central bank chief's remarks giving credit to the lending controls and calling for caution about economic optimism dampened expectations among investors for an interest rate increase this year.
The Bank of Korea has held the benchmark 7-day repurchase agreement rate steady at a record-low 2.0 percent for the past eight consecutive months after reductions totalling 3.25 percentage points over four months since last October.
Its governor, Lee Seong-tae, expressed in August and September his concern about rising housing prices, convincing investors to price in heightened risk of an early increase in interest rates.
Related articles
The Coming Korean Bubble (online.wsj.com)
"I believe our government must maintain its crisis management system for the time being because the world economy has not come out of the crisis yet," a statement from the presidential Blue House quoted Lee as saying during a scheduled cabinet meeting.
Later, Finance Minister Yoon Jeung-hyun told a parliamentary session government mortgage lending controls imposed last month were taking effect as real estate prices in the capital area were showing signs of stabilising.
"Real estate prices that had been growing fast in the capital areas are now stabilising after the introduction of DTI measures," he said, referring to the government's move last month to limit the amount of mortgage loans depending on the borrower's income.
The comments came after the central bank chief's remarks giving credit to the lending controls and calling for caution about economic optimism dampened expectations among investors for an interest rate increase this year.
The Bank of Korea has held the benchmark 7-day repurchase agreement rate steady at a record-low 2.0 percent for the past eight consecutive months after reductions totalling 3.25 percentage points over four months since last October.
Its governor, Lee Seong-tae, expressed in August and September his concern about rising housing prices, convincing investors to price in heightened risk of an early increase in interest rates.
Related articles
The Coming Korean Bubble (online.wsj.com)
Thursday, October 1, 2009
IMF: world economy recovering faster than expected
ISTANBUL, Turkey (AP) -- The International Monetary Fund said Thursday that the global economy is recovering faster than expected -- but warned governments against premature withdrawal of stimulus efforts.
The positive report card was likely to feed a cautious but widespread relief that -- despite continuing unemployment woes and halting efforts to improve regulation of financial markets -- the downturn is easing and may prove less devastating than initially feared.
According to the twice-yearly World Economic Outlook, the world is poised to grow by 3.1 percent in 2010 with much of the recovery driven by emerging economies such as China and India. That is up from the 2.5 percent in the IMF's previous set of estimates. And for 2009, the IMF now finds a 1.1 percent decline of global GDP instead of the 1.4 percent contraction it predicted in July.
But it warned against premature withdrawal of stimulus efforts and said uncertain growth in the developed world could soon put governments in a vise -- between keeping their stimulus spending going, or cutting it back to avoid ruining their finances with debt and deficits.
Related articles
The positive report card was likely to feed a cautious but widespread relief that -- despite continuing unemployment woes and halting efforts to improve regulation of financial markets -- the downturn is easing and may prove less devastating than initially feared.
According to the twice-yearly World Economic Outlook, the world is poised to grow by 3.1 percent in 2010 with much of the recovery driven by emerging economies such as China and India. That is up from the 2.5 percent in the IMF's previous set of estimates. And for 2009, the IMF now finds a 1.1 percent decline of global GDP instead of the 1.4 percent contraction it predicted in July.
But it warned against premature withdrawal of stimulus efforts and said uncertain growth in the developed world could soon put governments in a vise -- between keeping their stimulus spending going, or cutting it back to avoid ruining their finances with debt and deficits.
Related articles
Subscribe to:
Posts (Atom)