Shane Oliver
Shane Oliver
bit dramatic exports improved looking past
Exports probably would have improved a little bit but not much, so it's really just a continuation of the past - we're not looking for a dramatic change.
global growth insulated looking mining portraying rely resources returns stocks tragic woes
Returns aren't going to be as tragic as some are portraying because the mining stocks are still looking fine. The resources stocks rely more on global growth so, to a degree, they're insulated from many of the woes afflicting our own economy.
asian crisis far risk situation
The situation is far healthier. The risk of another Asian crisis is very low.
cent consensus december growth per profit year
Consensus expectations are for profit growth of 13.4 per cent for the year to the December quarter.
australian earnings market share strong thanks
So on this basis, and thanks to very strong earnings growth, the Australian share market is still cheap.
effort largely linked risk
You need to put effort into determining the return, which is largely linked to the risk of the borrower.
bank build exactly help increased investment pressure reserve wants
This is exactly what the Reserve Bank wants because increased investment reduces inflationary pressure and will help build capacity.
lasting relevance zealand
Developments in New Zealand are of little relevance to Australia, so won't have a lasting impact.
asian past stocks themselves turned
Asian stocks have completely turned themselves around the past decade, and they're going higher.
globally hostage largely market
Our market will be largely hostage to what's going on globally this week.
areas consumer exports fill help hole investment left luckily mining plug slowing
We need other areas to fill the hole left by slowing consumer spending. Luckily mining investment and exports are increasing, which will help plug the gap.
bit correction financial globally interest markets possible pressure putting quite rates share
Interest rates globally are putting some pressure on financial stocks. It's quite possible we go through a bit of a correction in share markets around the world.
cheap china environment helping hold inflation interest pricing products rates time underlying
Cheap products from China and a very competitive pricing environment is helping keep underlying inflation in check. Interest rates are on hold for the time being.
agencies blow borrower buy companies corporate credit default guide inflation people portfolio provide rating rely risk takes
In corporate debt, you have the credit risk of borrower defaulting and that's why people rely on the rating agencies to provide a guide on the default risk, and the other risk is that there could be a blow out in yields, for instance, you buy a portfolio and inflation takes off or companies go bust.