Said he wanted some articles to respond to, but he's not responding to the recent posts. In fact, no body is.... should I go on holiday and forget about you all?
Wednesday, April 8, 2009
Consumer confidence improves... indicating what?
Consumer confidence is a closely watched and hotly debated economic indicator. Some analysts regard it as an exceptionally meaningful barometer and forecasting tool, and many cite it as a strong factor in stock market swings. Yet others question its fundamental validity. Can we trust gauges of consumer confidence? Just what do they measure? How do these measurements interact with economic conditions? Do movements in confidence correlate with other indicators, including personal spending? Is confidence a leading, lagging or coincident indicator of economic recession and recovery?
Here's what was reported in the Australian today - note what story they think the figures suggest:
Why don't you do some wide reading on the usefulness of Consumer confidence as a macro economic indicator...
Sunday, April 5, 2009
DRQ:Consumer behaviour changing in response to...
This article from the Economist suggests reasons why consumer behaviour is changing. Explain why using evidence from the article, highlighting the use of coincident indicators such as these figures in the graph. Evaluate the effects through the economy as savings become more of a priority, also how businesses will have to adjust to attact potential shoppers. Using the DRQ answering process to define red terms, diagram to show falling demand, then blue directions for the rest of the answer.
DRQ: Soaring price of Gold...
People are literally trying to find more gold as its price keeps rising. Analyse why Demand for Gold continues to rise in-light of economic uncertainty and risks of inflation. You might also explain some of the history of the commodity as a standard for valuing currency, etc.
Monday, March 23, 2009
Bear talk - time to restructure....
http://www.abc.net.au/insidebusiness/
Watch Alan Kohler's interview with Stephen Roach of Morgan Stanley. Some interesting insight into where the market is due to correct further after excessive growth and activity.
List the different bubbles Stephen talks about. Why is 'carnage' expected? What's out of balance? What bubble exists in Australia which may still have further to deflate?
What restructuring needs to occur in the Chinese economy, how different is this to USA?
What is he worried about? From Demand and Supply side?
What is missing in Australia's economic plan?
How have central banks been negligent in relation to asset bubbles?
What figures from the Depression are put forward as being far in excess of anything we will experience in our future?
Watch Alan Kohler's interview with Stephen Roach of Morgan Stanley. Some interesting insight into where the market is due to correct further after excessive growth and activity.
List the different bubbles Stephen talks about. Why is 'carnage' expected? What's out of balance? What bubble exists in Australia which may still have further to deflate?
What restructuring needs to occur in the Chinese economy, how different is this to USA?
What is he worried about? From Demand and Supply side?
What is missing in Australia's economic plan?
How have central banks been negligent in relation to asset bubbles?
What figures from the Depression are put forward as being far in excess of anything we will experience in our future?
Wednesday, March 18, 2009
Why higher oil prices haven't cut demand...
http://www.msnbc.msn.com/id/6249750%20
Msnbc - american media source - wide range of links and data regarding the future of oil, prices and alternative fuels.
http://www.accc.gov.au/content/index.phtml/itemId/793605
price of oil is Singapore markets, direct effect upon bowser prices for fuel in Australia.
http://www.accc.gov.au/content/index.phtml/itemId/790921
follow the ACCC's investigation of fuel pricing in Australia...
http://www.accc.gov.au/content/item.phtml?itemId=300941&nodeId=ed87dd1de7d0b91f4b4b06d2b40f875e&fn=Caltex Australia.pdf
see Caltex's response.
Msnbc - american media source - wide range of links and data regarding the future of oil, prices and alternative fuels.
http://www.accc.gov.au/content/index.phtml/itemId/793605
price of oil is Singapore markets, direct effect upon bowser prices for fuel in Australia.
http://www.accc.gov.au/content/index.phtml/itemId/790921
follow the ACCC's investigation of fuel pricing in Australia...
http://www.accc.gov.au/content/item.phtml?itemId=300941&nodeId=ed87dd1de7d0b91f4b4b06d2b40f875e&fn=Caltex Australia.pdf
see Caltex's response.
Positive data? Confidence in Aussie share market?
Australian sharemarket forecast to rise, dollar gains 3pc
Allison Jackson March 19, 2009
Article from: The Australian
THE Australian dollar surged and shares are expected to open higher after the US Federal Reserve's decision to buy government bonds.The Aussie surged 2.8 per cent to US67.98 cents, the highest level in more than five weeks, from yesterday’s close of US66.13c. The June share price index futures contract rose 30 points to 3508, pointing to the possibility of a 0.9 per cent rise in the S&P/ASX 200. Australian three-year government bond futures also soared on the back of the announcement, rising 21 points to 96.99 for an implied yield of 3.01 per cent. The Fed said it would buy up to $US300 billion ($443 billion) in longer-term government bonds as well as spend an additional $US750 billion mopping up mortgage-back securities, in order to reduce rates for business and consumer loans and stimulate spending in the economy. The plan pushed Wall Street higher. The Dow rose 90.88 points (1.23 per cent) to 7486.58, its highest close in a month. The S&P 500 added 16.23 points (2.09 per cent) to 794.35, after ticking above the psychologically significant 800-level during the session for the first time since February 17. The technology-oriented Nasdaq Composite rose 29.11 points (1.99 per cent) to 1491.22, helped by a reported IBM bid to buy Nasdaq component Sun Microsystems.
Practise responding to this article a little like you would a DRQ question:
1.Define the terms Bond, futures, Dow Jones, S&P 500, Nasdaq, index, confidence.
2.Draw an appropriate diagram to help show what is happening to one of these markets and why.
3.Use your knowledge and evidence from the article to explain the effect of news like this on the Australian share market.
Allison Jackson March 19, 2009
Article from: The Australian
THE Australian dollar surged and shares are expected to open higher after the US Federal Reserve's decision to buy government bonds.The Aussie surged 2.8 per cent to US67.98 cents, the highest level in more than five weeks, from yesterday’s close of US66.13c. The June share price index futures contract rose 30 points to 3508, pointing to the possibility of a 0.9 per cent rise in the S&P/ASX 200. Australian three-year government bond futures also soared on the back of the announcement, rising 21 points to 96.99 for an implied yield of 3.01 per cent. The Fed said it would buy up to $US300 billion ($443 billion) in longer-term government bonds as well as spend an additional $US750 billion mopping up mortgage-back securities, in order to reduce rates for business and consumer loans and stimulate spending in the economy. The plan pushed Wall Street higher. The Dow rose 90.88 points (1.23 per cent) to 7486.58, its highest close in a month. The S&P 500 added 16.23 points (2.09 per cent) to 794.35, after ticking above the psychologically significant 800-level during the session for the first time since February 17. The technology-oriented Nasdaq Composite rose 29.11 points (1.99 per cent) to 1491.22, helped by a reported IBM bid to buy Nasdaq component Sun Microsystems.
Practise responding to this article a little like you would a DRQ question:
1.Define the terms Bond, futures, Dow Jones, S&P 500, Nasdaq, index, confidence.
2.Draw an appropriate diagram to help show what is happening to one of these markets and why.
3.Use your knowledge and evidence from the article to explain the effect of news like this on the Australian share market.
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