Latest updates on Key Economic Indicators

Australian Dollar: $0.7300 USD (down $0.0013 USD)

Iron Ore Dec Spot Price (SGX): $122.32 USD (up $2.02 USD)

Oil Price (WTI): $41.45 USD (up $0.03 USD)

Gold Price: $1,885.65 (down $1.23 USD)

Dow Jones: 29,745.79 (down 74.61 points)

All changes compared to 7am yesterday.

US troops in Afghanistan: Pentagon confirms US troop withdrawal

The US is to cut its number of troops in Afghanistan and Iraq by 2,500, the US Department of Defense has confirmed.

President Donald Trump had previously warned that he would be cutting the size of US forces in the two countries.

The cuts will take effect before President Trump leaves office, the Pentagon said.

The Secretary-General of the Nato alliance, Jens Stoltenberg, has warned of a "high price" if US and allied forces leave Afghanistan too quickly.

In a statement, he said the country risked once again becoming a platform for international militants to organise attacks.

Nato currently leads a mission to train and advise the Afghan security forces. From 2003 to 2014, it ran a combat mission in Afghanistan with 130,000 soldiers at its peak.

In Iraq, the number of US troops will be cut by 500 to 2,500, while the number of service personnel in Afghanistan will fall from 4,500 to about 2,500.

Acting US Defense Secretary Chris Miller said the move reflected Mr Trump's policy "to bring the wars in Afghanistan and Iraq to a successful and responsible conclusion and to bring our brave service members home".

Shortly after the announcement, several rockets were fired into the Green Zone in Baghdad and landed near the US embassy. It is the first such attack since Iraqi militias linked to Iran agreed to stop targeting the embassy compound last month.

There are no reports of casualties or any damage.

US forces have been in Afghanistan since 2001.

A US-led coalition ousted the Taliban weeks after the 11 September 2001 attacks in the US by al-Qaeda, which was then based in Afghanistan.

The Taliban regrouped and became an insurgent force that by 2018 was active in more than two-thirds of the country.

The US started withdrawing troops from Afghanistan as part of a historic peace deal signed by the US and the militants on 29 February.

Military chiefs, including Gen McKenzie, have warned in the past that peace negotiations between the Taliban and Afghan authorities could be undermined by a hasty US withdrawal.

SA Premier warns on knee-jerk response

The Australian - Page 5 : 18 November 2020 - Original article by David Penberthy - PortMac.News Summary

Federal Health Minister Greg Hunt says the coronavirus cluster in Adelaide does not yet meet the definition of a national 'hotspot'.

He has emphasised that there is no need for any state or territory to close its borders to people from South Australia. Queensland, Western Australia, Tasmania and the Northern Territory have closed their borders in response to the latest outbreak.

SA Premier Steven Marshall contends that closing borders and "smashing the national economy" every time there is an outbreak is not the solution. He says contact tracing and mass testing is the best way to deal with outbreaks.

ANZ-Roy Morgan Consumer Confidence increases for eleventh straight week

Market Research Update - Page Online : 18 November 2020 - Original article by Roy Morgan - PortMac.News Summary

ANZ-Roy Morgan Consumer Confidence rose 3.5pts to 106.6 on the weekend of November 14/15.

It is now 11.9pts above the 2020 weekly average of 94.7, and only 3.3pts lower than a year ago (109.9). Consumer Confidence has now increased for eleven straight weeks and is up 16.4pts since ending August at 90.2, and at its highest since February 22/23 (108.3).

The recovery in Consumer Confidence over the last 2-3 months is due in large part to the tremendous amount of Government support for the economy during 2020, which is now well in excess of $100 billion.

Now 27% (unchanged) of Australians say their families are 'better off' financially than this time last year, while 32% (down 1ppt) say their families are 'worse off' financially.

In addition, 38% (up 3ppts) of Australians expect their family to be 'better off' financially this time next year, and 15% (down 2ppts) expect to be 'worse off' financially (the lowest figure for this indicator since February).

Some 14% (up 2ppts) of Australians expect 'good times' for the Australian economy over the next 12 months, while 24% (down 5ppts), expect 'bad times' (the lowest figure for this indicator since April 2019).

Inflation Expectations up from record low in August, now up to 3.5%

Market Research Update - Page Online : 18 November 2020 - Original article by Roy Morgan - PortMac.News Summary

In October, Australians expected inflation of 3.5% annually over the next two years, up 0.2% points from September and now up 0.3% points on the record low in August.

However, Inflation Expectations are still 0.5% points below the pre-pandemic month of March.

The opening up of Australia continued during October with Victoria finally exiting a 16-week lockdown late in the month and border restrictions between various States being relaxed.

Inflation Expectations increased in all States since August except Victoria, which has the lowest in the nation at only 3.2% (unchanged).

On a State-based level Inflation Expectations are now highest in Tasmania at 4.4% in October, up 1% point since August ahead of NSW on 3.7% (up 0.4% points) and WA on 3.7% (up 1% point). Inflation Expectations are in line with the national average in Queensland at 3.5% (up 0.1% points) and just below that in SA at 3.4% (up 0.2% points).

Roy Morgan October Inflation Expectations are based on personal interviews with a nationally representative sample of 6,136 Australians aged 14+.

Japan defence pact pivotal moment: PM

The Australian Financial Review - Page 1 & 2 : 18 November 2020 - Original article by Phillip Coorey - PortMac.News Summary

Prime Minister Scott Morrison and Japanese counterpart Yoshihide Suga have reached an in-principle agreement regarding a bilateral defence treaty.

It follows six years of negotiations over the Reciprocal Access Agreement, which is set to be signed when Suga visits Australian in 2021.

Morrison says Australia and Japan have regularly held joint military exercises in recent years, and this will increase under the new agreement. Morrison has also met with Japanese business leaders during his trip to Tokyo.

We can work with Beijing: Frydenberg

The Australian - Page 1 & 2 : 18 November 2020 - Original article by Simon Benson - PortMac.News Summary

Treasurer Josh Frydenberg will use a speech on 18 November to stress that the federal government is committed to improving Australia's strained relations with China.

He will emphasise that both nations have benefited from their growing trade ties, and the government is ready to engage with its Chinese counterpart in "respectful, mutually beneficial dialogue".

However, Frydenberg will also state that Australia's national interest will always take precedence.

Cabinet Minister Alan Tudge the target of an alleged foreign influence plot by CCP front group

Herald Sun - Page Online : 18 November 2020 - Original article by Ellen Whinnett - PortMac.News Summary

Melbourne resident Di Sanh Duong recently became the first person to be charged under the federal government's foreign interference laws.

It has been revealed that Acting Immigration Minister Alan Tudge was the target of the alleged plot.

It is believed that the charges against Duong relate to a plan to attempt to influence Tudge via an organisation that is linked to the Chinese Communist Party's overseas influence arm, the United Front Work Department.

Robodebt scandal only the beginning for ATO

The Australian - Page 19 : 18 November 2020 - Original article by Robert Gottliebsen - PortMac.News Summary

The federal government's ill-fated 'robodebt' scheme for welfare recipients has proven to be a costly exercise, with the government agreeing to settle a class action for $1.2bn.

However, the cultural problems within sections of the Australian Taxation Office that led to the robodebt scandal may leave taxpayers with a much larger bill.

The Federal Court's recent ruling on the ATO's actions in effectively destroying the nation's gold refining industry has exposed taxpayers to a massive compensation claim from an industry that was unfairly targeted.

The states may also be entitled to seek compensation for the loss of goods and services tax revenue.

The fake and the furious: Rudd's Bangladeshi 'bots'

The Australian - Page 1 & 4 : 18 November 2020 - Original article by Sharri Markson, Richard Ferguson - PortMac.News Summary

The vulnerability of Australia's parliamentary e-petition system to foreign interference has been exposed following revelations that a petition calling for a royal commission into media diversity included many fake names.

The petition instigated by former prime minister Kevin Rudd attracted more than 500,000 signatures, but cybersecurity expert Robert Potter says his initial analysis suggests that some of them were the result of computer-generated 'bots'.

Melbourne-based blogger Nicholas Smith has admitted that he paid a Bangladeshi man to generate 1,000 false signatures.

The petition will be investigated by a lower house committee; the Senate agreed to undertake an inquiry into media diversity in response to the petition.

'No rate rise until wages grow': RBA

The Australian - Page 5 : 18 November 2020 - Original article by Patrick Commins - PortMac.News Summary

The minutes of the Reserve Bank of Australia's latest board meeting show that the prospect of an extended period of high unemployment and low inflation prompted its decision to reduce the cash rate to a record low in November.

The RBA also signalled that the cash rate is likely to remain at 0.1 per cent for at least three years.

It said any rate rise will be dependent on an inflation rate that is "sustainably" within its target range of 2-3 per cent; this will in turn require wages growth to be "materially higher" than in recent times.

NSW Five years to turn huge debt to black

The Australian - Page 1 & 6 : 18 November 2020 - Original article by Yoni Bashan - PortMac.News Summary

The New South Wales government's Budget papers show that the state's deficit is forecast to top $15.9bn in 2020-21.

The government is not expected to deliver a surplus until 2024-25.

Net debt is slated to reach $53bn by mid-2021 and blow out to $104bn by 2024.

Meanwhile, the state's unemployment rate is expected to reach 7.5 per cent by the end of 2020 and fall to 5.25 per cent by mid-2024.

Treasurer Dominic Perrottet has also announced that the government will look at making stamp duty optional, with home owners being able to choose to pay an annual land tax instead.

Vaccine hopes, US gains lift bourse

The Australian - Page 18 : 18 November 2020 - Original article by Samantha Bailey - PortMac.News Summary

The Australian sharemarket posted a small gain on 17 November, with the S&P/ASX 200 rising 0.21 per cent to 6,498.2 points.

BHP was 1.4 per cent higher at $37.01, Oil Search rose 4.3 per cent to $3.92 and the ANZ Bank rallied 2.8 per cent to end the session at $21.72. However, Evolution Mining shed 5.2 per cent to finish at $5.70 and Afterpay was down 5.4 per cent at $95.93.

More glitches emerge on stock exchange as regulator seeks more answers

The Australian - Page 18 : 18 November 2020 - Original article by Cliona O'Dowd - PortMac.News Summary

Stock exchange operator ASX Limited experienced technical problems with its Centre Point dark liquidity matching system on 17 November.

The Australian Securities & Investments Commission has questioned why the ASX did not use bids and offers from rival Chi-X; the corporate regulator will look into whether this was a breach of ASX's market licence obligations.

ASX has already attracted scrutiny from ASIC after problems with a software update forced the sharemarket to close after just 30 minutes of trading on the previous day.

Nine board pushed for assurance of best way forward after Marks

The Australian Financial Review - Page 15 : 18 November 2020 - Original article by Max Mason - PortMac.News Summary

Nine Entertainment will consider both internal and external candidates to succeed CEO Hugh Marks.

However, fund managers warn that key executives who could potentially be in the running for the top job may resign should Nine opt for an external candidate.

Patrick Potts of Martin Currie Australia adds that Nine's board should reveal the timeline of events that led to Marks' abrupt resignation, contending that the full story is not yet known.

Chris Janz and Mike Sneesby are regarded by many as the leading internal candidates to replace Marks.

REA flags signs of recovery

The Australian - Page 15 : 18 November 2020 - Original article by Ben Wilmot - PortMac.News Summary

REA Group has advised that residential property listings fell by one per cent nationally in October, although listings in Melbourne rose by 14 per cent as coronavirus lockdown restrictions eased.

CEO Owen Wilson notes that growth in listings in Melbourne has been more subdued so far in November.

Meanwhile, REA has reported that the number of visits to its realestate.com.au listings website rose by 36 per cent year-on-year in October.

BHP has an Olympic-sized quandary

The Australian Financial Review - Page 36 & 37 : 18 November 2020 - Original article by Peter Ker - PortMac.News Summary

BHP has retained the Olympic Dam mine in South Australia primarily because of its future potential rather than its current output.

The mine has yet to deliver a return on invested capital.

It is generally agreed within BHP that the infrastructure at Olympic Dam falls well short of the resources giant's standards, and some insiders have advocated demolishing the infrastructure and starting from scratch.

However, the fact that BHP will spend $500m on maintenance at Olympic Dam in 2021 suggests that this is not an option.

The future of Olympic Dam may depend on the size of the nearby Oak Dam copper deposit.

New Hope says China defers coal shipments

The Australian Financial Review - Page 16 : 18 November 2020 - Original article by Peter Ker - PortMac.News Summary

New Hope Corporation's CEO Reinhold Schmidt says Chinese customers have asked for two shipments of coal that were scheduled to be delivered in November to be pushed back to January.

This has given credence to suggestions that China's decision to block coal imports from Australia may be because China has reached its annual coal import quota rather than the fallout from ongoing trade tensions between the two nations.