Good economic news thread

glacial_pace71

frankbrett wrote: »

Indeed you can get a Euro account in an AUD bank

https://www.anz.com/resources/d/8/d8f1960046d35bcd99569dff59dc78ef/RateSheet-FCA220413.pdf?MOD=AJPERES

0% interest. As you won't get the base currency rate as this is a function of the relative supply and demand/cost of funds of AUD, not EUR.

Otherwise a massive arbitrage would be available to all Euro Sovereigns to borrow in Euroland and invest abroad at higher rates. EUR deposit rates are at basement level as institutions will lend to each other for close to zero to avoid being penalised for holding cash due to the ECB deposit rate being negative.

Exactly. I think the Australian financial institutions had already been around the block with the Yen carry trade for a decade or more and so are more au fait with zero/negative interest rates in one currency being used for a play in another economy. The ECB drama here is still only raising awareness levels of how those outside the eurozone have been dealing with this situation in many similar guises.

Sheldons Brain

Mongfinder General wrote: »

Thank you Frank, I think you're wrong.

http://australia.deposits.org/

And before you say it, most of these banks will facilitate a euro account

The only place you'll get that interest rate is probably Greece!

Mongfinder General

frankbrett wrote: »

Indeed you can get a Euro account in an AUD bank

https://www.anz.com/resources/d/8/d8f1960046d35bcd99569dff59dc78ef/RateSheet-FCA220413.pdf?MOD=AJPERES

0% interest. As you won't get the base currency rate as this is a function of the relative supply and demand/cost of funds of AUD, not EUR.

Otherwise a massive arbitrage would be available to all Euro Sovereigns to borrow in Euroland and invest abroad at higher rates. EUR deposit rates are at basement level as institutions will lend to each other for close to zero to avoid being penalised for holding cash due to the ECB deposit rate being negative.

For the average retail punter, they'll get zero return as I have done on my U.S. dollar account here. However, a sovereign can negotiate a rate if it places funds with an institution for 3 month, 6 month, 12 month period. Even if it's less than the rate that it's borrowed at, it is something of a return.

Sheldons Brain
Quote:
Ot that interest rate is probably Greece!

As for placing deposits in Greece, I wouldn't advise that unless you want it back in New Drachma.

frankbrett

Mongfinder General wrote: »

For the average retail punter, they'll get zero return as I have done on my U.S. dollar account here. However, a sovereign can negotiate a rate if it places funds with an institution for 3 month, 6 month, 12 month period. Even if it's less than the rate that it's borrowed at, it is something of a return.

Sheldons Brain
Quote:
Ot that interest rate is probably Greece!

As for placing deposits in Greece, I wouldn't advise that unless you want it back in New Drachma.

Something of a return is still negative cost of carry, which is larger the further out the curve you go to borrow and increases refinancing risk if done at the short end. sovereigns have limited risk appetite for currency or credit risk and assets are typically cash or low yielding short-term instruments as liquidity policy would dictate monies are available to meet obligations in the short term.

Godge

http://www.rte.ie/news/2015/0610/707078-esri/

"The Irish economy is to continue to enjoy strong growth over the next 18 months, according to the Economic and Social Research Institute.

In its latest Quarterly Economic Commentary, the ESRI says Ireland's gross domestic product will grow by 4.4% this year and 3.7% in 2016."

Sheldons Brain

Exports reach all time high
http://www.rte.ie/news/business/2015/0615/708254-cso-trade-figures/

nice_guy80

I'm going to start a Bad news economic news thread

Sheldons Brain

nice_guy80 wrote: »

I'm going to start a Bad news economic news thread

Probably best to wait until 2028 or so, when people will sneer at your thread and suggest that you commit suicide, but the thread will fill up a year or so later.

Dave!

nice_guy80 wrote: »

I'm going to start a Bad news economic news thread

I'm going to post good news in it

ezra_pound

nice_guy80 wrote: »

I'm going to start a Bad news economic news thread

You go do that tiger.

Good man yourself.

my friend

nice_guy80 wrote: »

I'm going to start a Bad news economic news thread

Joe Duffy, Ray Darcy, Matt Cooper, Shane Ross & Vinnie Browne have that market cornered

andrew

nice_guy80 wrote: »

I'm going to start a Bad news economic news thread

AKA every other thread in this forum.

nice_guy80

andrew wrote: »

AKA every other thread in this forum.

When there's some positive political news, let me know.

OK, I'll call it a realistic economic news thread.

Saipanne

nice_guy80 wrote: »

When there's some positive political news, let me know.

OK, I'll call it a realistic economic news thread.

Worst. Thread. Ever.

Saipanne

Sheldons Brain wrote: »

Exports reach all time high
http://www.rte.ie/news/business/2015/0615/708254-cso-trade-figures/

Ah, great work guys. Really good job by all concerned.

*high fives*

Godge

http://economic-incentives.blogspot.ie/2015/06/debt-in-ireland-is-around-260-per-cent.html


A rather complicated and detailed article, but the headline captures most of it:

"Debt in Ireland is around 260 per cent of GDP and falling"

The debt referred to is total debt - Government debt (now down close to 100% of GDP), household debt and corporate debt.

The trend is definitely very good news even if the total level still needs to come down.

ardmacha

Seamus Coffey does some good stuff.
Another really interesting post is
http://economic-incentives.blogspot.ie/2015/06/the-rise-in-aggregate-wages-and.html

There is one chart here that should inform the public pay debate

fxotoole

nice_guy80 wrote: »

I'm going to start a Bad news economic news thread

Sure just open any thread in After Hours and it's all doom and gloom

Godge

http://www.finance.gov.ie/sites/default/files/Exchequer%20Returns%20end%20June%202015%20information%20note.pdf


"Tax revenue of €20,622 million was collected to end-June 2015 and is €805 million (4.1%) above profile"

"Overall net voted expenditure for end-June 2015, at €20,415 million, was 1.5% or €304 million below profile"


Very significant and it means the deficit will be over €1bn lower than expected.

Saipanne

Great news! In your face, Sir Richard Boyd Barrett!

frankbrett

Godge wrote: »

http://www.finance.gov.ie/sites/default/files/Exchequer%20Returns%20end%20June%202015%20information%20note.pdf


"Tax revenue of €20,622 million was collected to end-June 2015 and is €805 million (4.1%) above profile"

"Overall net voted expenditure for end-June 2015, at €20,415 million, was 1.5% or €304 million below profile"


Very significant and it means the deficit will be over €1bn lower than expected.

Most of that tax revenue comes from the massive pay packets of the 'figure massagers' employed by the government and right wing media. Da peeple aren't fooled.

fxotoole

frankbrett wrote: »

Most of that tax revenue comes from the massive pay packets of the 'figure massagers' employed by the government and right wing media. Da peeple aren't fooled.

Sounds spurious. Any evidence to back this up?

FreudianSlippers

fxotoole wrote: »

Sounds spurious. Any evidence to back this up?

Nope.

ezra_pound

frankbrett wrote: »

Most of that tax revenue comes from the massive pay packets of the 'figure massagers' employed by the government and right wing media. Da peeple aren't fooled.

Actually the figures are controlled by Dennis o'Brien's minions, the green lizard men from the yagob system. Trust nothing.

ardmacha

Plenty of young ones to pay off the debt.
http://www.breakingnews.ie/ireland/2014-was-bumper-year-for-irish-birth-rate-685928.html

KingBrian2

Any good news is being swallowed up by the mess going on in Athens.

Saipanne

KingBrian2 wrote: »

Any good news is being swallowed up by the mess going on in Athens.

It is good news. People viewing Syrizas nutty actions and their consequences are less likely to vote for our leftie loons.

nice_guy80

Saipanne wrote: »

It is good news. People viewing Syrizas nutty actions and their consequences are less likely to vote for our leftie loons.

Won't FG look like right geniuses when Greece gets a large debt write down and very favourable loans from the Troika to help them over the next 3 years, until the next crisis.

Greyian

nice_guy80 wrote: »

Won't FG look like right geniuses when Greece gets a large debt write down and very favourable loans from the Troika to help them over the next 3 years, until the next crisis.

Ah yes, an Ireland where some of our debt is written off, but the ATMs are running out of cash, the banks are closed and food/medical supplies are running low, along with some people not getting paid their wages. What a place to live!

K-9

nice_guy80 wrote: »

Won't FG look like right geniuses when Greece gets a large debt write down and very favourable loans from the Troika to help them over the next 3 years, until the next crisis.

Or Syriza and their supporters if they end up with a similar deal as us, for a hell of a lot more drama and economic hardship on Greek citizens.