Dollar Sets New Post-float High
THE dollar set a new post-float high in early trading in Europe, as traders favoured domestic and overseas risk assets due to strong global growth on the horizon.
Just before 6.35pm (AEST), the dollar reached 103.06 US cents, breaching the key 103 US cents trading level but retreated quickly to 102.98 US cents by 6.43pm.
Shock rise in mortgage default cases
* Borrowers unable to catch up on payments
* Migrating into 90-plus days in arrears
* Mortgage performance at record low
IF YOU have missed three monthly mortgage payments, expect a default notice in the mail any day now.
More people than ever are defaulting on their home loan repayments, according to credit ratings agency Fitch and the situation is expected to get even worse.
Should you cash in your shares? Australian workers want to quit their jobs
* 82 per cent of Aussies want new job
* Men want more flexibility in workplace
* Job satisfaction is at a new low
HATE your job? You’re not alone. The Aussie workplace has become a revolving door in overdrive with most people wanting to quit.
Job dissatisfaction has hit a record high, with more than 80 per cent of workers considering changing jobs during the past twelve months – the highest level in three years.
Small budget, smart savings, big rewards
AUSTRALIAN households are battening down the hatches with cut-price deals being sought for almost every purchase, as family budgets continue to take a battering.
The cost of living is rising but so too is the hunt for savings on almost everything, from clothes, groceries, holidays and insurance.
Should you cash in your shares?
AUSSIE shares have been flat over the past five years. Our Panel of financial experts discuss whether you should sell and switch the proceeds to cash?
THE best way to answer that question is with another question. Substitute the words “Aussie shares” with the words “housing market” and ask the question again.
Oil Prices Slide on Prospect of Lower Japanese demand
World oil prices dropped $2 Monday on the prospect of lower crude demand from quake-hit Japan, traders said.
New York’s main contract, light sweet crude for delivery in April, shed $2.0 to $99.16 a barrel.
In London morning trade, Brent North Sea crude for April lost $2.02 to $111.82.
“Given the earthquake disaster in Japan, crude oil consumption should be much lower temporarily in the world’s third largest oil consuming country,” said Commerzbank analyst Carsten Fritsch.
Crude futures fell immediately last week in reaction to Friday’s massive 8.9-magnitude earthquake off Japan and tsunami that battered the country’s northeast coast and stretched across the Pacific.
“In the short term, there might be some demand disruptions due to the Japanese earthquake, but there will be an increase in fuel oil imports due to the lost nuclear power capacity, which will be supportive of fuel oil prices in the near term,” said Chen Xin Yi, commodities analyst for Barclays Capital.
Investors were also following the unrest in oil-producing Libya, where rebels continue to battle forces loyal to leader Moamer Kadhafi. Libya’s state agency said Monday that Kadhafi had invited Chinese, Russian and Indian firms to produce its oil, replacing Western companies that fled unrest.
Qatar’s Energy Minister Mohammed Saleh al-Sada meanwhile said Sunday that world oil output was sufficient despite the unrest in Libya, which had slashed the country’s crude production.
Libya was producing 1.69 million barrels per day (bpd) before the unrest, according to the International Energy Agency. Of this, 1.2 million bpd was exported, mostly to Europe but with China and the United States also major customers.
In Nigeria, another key oil exporter, militant group MEND has threatened simultaneous bomb blasts and attacks on oil facilities.
“The Movement for the Emancipation of the Niger Delta (MEND) will soon commence with simultaneous bomb blasts and attacks on oil installations in the Niger Delta and other strategic locations in Abuja and Lagos state of Nigeria,” the group said in an e-mail statement late Sunday.
The warning by MEND, which claims to be fighting for a fair share of Nigeria’s oil wealth for the people of the Niger Delta, comes before Nigeria holds legislative and presidential elections in early April.
Source : au.finance.yahoo.com
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Insurance Sector Vulnerable after Japanese Catastrophe
* QBE exposed in Japan
* IAG, Suncorp face rising costs
* Insurers heading for broker downgrades
SHARES in the insurance sector are vulnerable to further sell-offs as the massive earthquake and tsunami in Japan raise fears of soaring reinsurance costs.
QBE Insurance Group, Australia’s biggest insurer and the most exposed to Japan, yesterday warned that its preliminary assessment was that it would suffer net claims of $US125 million ($123.8m). QBE’s shares fell 18c, or 1 per cent, to $16.99, The Australian reports.
Shares in other insurers were also hit.
Insurance Australia Group was down 9c, or 2.6 per cent to $3.38, and Suncorp fell 11c, or 1.3 per cent, to $8.08. The two companies have no exposure in Japan, but there are concerns the insurers face rising costs thanks to the reinsurance market.
Southern Cross equities director Charlie Aitken warned that Australian insurers were headed for broker downgrades.
“This large-scale disaster may well prove the straw that breaks the reinsurance camel’s back.
What’s bad for reinsurers is worse for insurers, with reinsurance rates likely to go through the roof and crush margins,” Mr Aitken said.
QBE said in a statement yesterday the total net cost from all large individual and catastrophe claims to date this year would be about $US550m — well within its allowance of $US1.65bn after aggregate reinsurance protection.
“The majority of our estimated net claims from the devastating Japanese earthquake will come from the relatively low exposure in our reinsurance, marine and energy operations in Europe,” chief executive Frank O’Halloran said.
But analyst Ryan Fisher of Goldman Sachs questioned whether the allowance of $US1.65bn was “no longer looking as large or comfortable as it usually would” given that the US hurricane season usually happens in the second half of the year.
He added the first three months of this year had been hit with so many natural disasters including the Queensland floods, Cyclone Yasi and New Zealand’s Christchurch earthquake.
QBE is one of the few Australian insurers that has exposure to Japan’s horrific earthquake and tsunami. IAG has no operations in Japan but is in Thailand and Malaysia. Suncorp is focused on Australia and New Zealand markets, with minimal exposure in Asia.
Source : www.news.com.au
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Westpac bank’s CEO Gail Kelly Promises to Pass on Savings as Rate Cut
WESTPAC bank’s CEO Gail Kelly has promised to lower rates independent of the Reserve Bank when funding cost fall towards the end of 2012.
Ms Kelly told ABC television last night she failed to convey Westpac’s “absolutely explainable” decision to lift its interest rates above the increase announced by the RBA in December 2009.
“I didn’t do nearly a good enough job of getting out there personally to explain the factors,” she said, referring to increased borrowing costs in the financial crisis.
More Australians Fall Prey to Internet Banking Frauds
* Net scammers take $1.5m monthly
* Criminals mine social networking sites
* Incidents rose by 40 per cent last year
MORE than 50 Australians a week are victims of online banking fraud, with criminals mining social networking sites for new prey.
How to stay afloat in tough times
* Make sure you are protected by insurance
* Home, contents, car, life and income are key
* A few common traps that catch people out
PROBLEMS with flood payouts highlight a wider problem, writes Anthony Keane.
Insurance has been in the public spotlight much more than usual because of a terrible spate of natural disasters.