Blog Entries for Recovery Watch

Recovery Watch: Short-term rates riddle, long-term China warning

jthomson@smartcompany.com.au — Tue, 02 Oct 2012 01:43:51 +0100

Today’s Entrepreneur Watch blog is a joint posting on the SmartCompany Recovery Watch blog, although it probably raises more questions about the state of the recovery than it provides answers.

Professor Ross Garnaut, a leading government adviser and the man who did all the exploratory work on the way to Labor’s carbon pricing regime, has delivered a blunt warning about the state of the Chinese economy and what it means for Australia.

Garnaut, a noted expert on China for deca [...]

Recovery Watch: Economists tip rate cuts next month

jthomson@smartcompany.com.au — Wed, 19 Sep 2012 00:15:34 +0100

The Reserve Bank of Australia has signalled it has the room and the inclination to cut interest rates, with most economists now expecting a rate cut in October and potentially another in November.

The RBA said in the minutes of its September board meeting that “developments since the previous board meeting suggested that the global economy remained subject to significant downside risks. Of particular note this month was the recent sharp decline in some bulk commodity prices.”

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Ben Bernanke promises to buy bonds until US jobs market improves

jthomson@smartcompany.com.au — Fri, 14 Sep 2012 01:47:09 +0100

The “whatever it takes” mantra is becoming the latest catch-cry of the world’s most powerful bankers.

Last week we had the European Central Bank promising it would buy an unlimited number of bonds until the euro is saved.

Overnight, US Federal Reserve head Ben Bernanke announced a fresh round of bond buying that will not stop until the unemployment situation in the US improves.

The Fed has committed to buying $US40 billion of mortgage-backed securities per month – u [...]

Recovery Watch: German court decision brings European rescue closer

jthomson@smartcompany.com.au — Thu, 13 Sep 2012 01:14:11 +0100

It’s not often that SmartCompany covers goings on in the German court system, but today there was a decision that will have ramifications around the globe.

Essentially, Germany’s Constitutional Court has ruled against a host of challenges to the German government’s support of European Stability Mechanism (ESM) and an associated fiscal pact, both of which are designed to build a 700 billion euro “firewall” around the European debt crisis and stop stricken European nations from accum [...]

Recovery Watch: 10 green shoots in our economy

jthomson@smartcompany.com.au — Mon, 10 Sep 2012 14:00:00 +0100

We know it’s not easy for entrepreneurs to see through the economic gloom right now. But the worst is behind us. Really, it is.

Yes, conditions remain patchy at best. Yes, there is still plenty of economic data that suggests that full recovery is still some way away.

But you cannot take your eyes o [...]