Economic and market news
In Australian economic news, data show that unemployment held steady at 3.9 per cent in December. Alongside this, it was noted that employment dropped by 65,000 people in the month. However, it was suggested that after the larger than usual employment growth in October and November (a combined increase of 117,000 people) the fall in December reflects changes in the timing of employment growth compared with earlier years.
In overseas economic news, new data show that China’s economy expanded at a 5.2 per cent annual pace in the December quarter, compared with 4.9 per cent in the previous three months, as the slow post-pandemic recovery showed signs of improvement. However, this outturn was below economists’ fourth quarter growth projections of 5.3 per cent.
China’s economy is forecast to slow to well below 5 per cent growth this year as it faces high debt, a housing crisis, and an ageing and shrinking population. The new figures show that China’s population fell by 2 million last year, after deaths surged from COVID-19 and births fell to a new low.
Australian indices
ASX 200: Was up 1.35 per cent over the week, to close at 7514.9 points on Tuesday.
All Ordinaries: Was up 1.24 per cent in the period, closing at 7742.1 points on Tuesday.
Government Bonds
Government Bond Yields (Source: Bloomberg)
|
NAME |
COUPON |
PRICE |
YIELD |
1 DAY |
1 MONTH |
1 YEAR |
|
GTAUD2Y:GOV Australia Bond 2 Year Yield |
0.25
|
93.66 |
3.88% |
-5 |
+14 |
+92 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
2.75 |
95.30 |
3.82% |
-5 |
+13 |
+67 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.00 |
90.50 |
4.19% |
-4 |
+18 |
+74 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
87.11 |
4.40% |
-4 |
+19 |
+62 |
Reserve Bank of Australia (Source:RBA)
|
RBA CASH RATE TARGET (RBATCTR:IND) CURRENT (per cent) |
MOST RECENT DECISION (percentage points) |
MOST RECENT CHANGE (percentage points) |
1 YEAR PRIOR (per cent) |
|
4.35 |
+0 (5 December 2023) |
+0.25 (7 November 2023) |
3.10 |
Currencies (source:RBA)
As at the close on 23 January, the AUD/USD was almost unchanged, down 0.22 per cent over the week at 0.6602. The AUD/RMB was similar stable, falling 0.41 per cent, in the period, closing at 4.7326 on Tuesday.
Venture Capital
Forcite – STOP PRESS!!!
In incredibly exciting news for our investees Forcite, and the family of Stoic investors, this world leading smart motorcycle helmet venture is set to beacquired by GoPro.
GoPro says it intends to accelerate Forcite's vision to provide a safer, more dynamic motorcycling experience through tech-enabled motorcycle helmets, with the long-term goal of tech-enabling other categories of helmets over time.
Stoic's General Partner, Guy Hedley, said ‘Forcite is a poster child for what Stoic Venture Capital is about - supporting Australian university originated deep-tech and life sciences research to achieve life changing and life-saving innovation. From my first meeting with the team at the incubator Haymarket HQ 8 years ago, Alfred Boyadgis and his crew have evolved from pulling apart helmets at four desks to establishing a very cool global tech-hardware brand.
‘Forcite is the fourth successful exit from Stoic’s Fund 1, proving again that venture capital investment both powers innovation and makes a return for investors.
‘We have 15 remaining investees in Fund 1, and many of those will be follow-on funded and taken to exit in Stoic’s Fund 2.
‘The Stoic and Uniseed team are incredibly proud of the work we have done to support Alfred and the Forcite family. And we look forward to watching them have global success, while supporting the next wave of Aussie innovators who will also change the world for the better.’
Wildlife Drones
Wildlife Drones’ CEO Debbie Saunders was a guest on podcast 'A talk on the wild side', shared insights on the ground breaking use of drones in wildlife research.
Property
In property news this week there was discussion that suggested that Australia’s fast-rising population and softer capitalisation rates will fuel demand for neighbourhood malls in 2024. It was reported that there were three of these sales, totaling $45 million, in the weeks leading to Christmas alone. The malls, in south east Queensland, were anchored all anchored major by supermarkets.
There was further discussion about the strength of this sector. Shopping centres are now consistently performing well on the back of resilient consumer demand, and there are a variety of opportunities available. In an environment where investors are seeking higher returns, the combination of these two factors is putting retail back on the radar for several groups of investors.
