Companies in Australia have signaled to the Bureau of Statistics that they plan to cut investment spending by 17%. The AFR says this would be the biggest cut to investment spending in 20 years and comes right on the back of Qantas announcing another record half year loss and the slashing of 5000 jobs. Miners are looking to cut by 25% and manufacturing is looking to cut by 20%.
If you read the AFR I am sure you enjoy seeing David Rowe's daily cartoon. Today's is a beauty.
The Aussie Dollar sunk Thursday reaching new monthly low and sharply deteriorated against the Kiwi Dollar. The Ukraine and its economic woes are also weighing on emerging market currencies and with Russia's leader announcing he has 150,000 troops on standby it only added more weight to the buying activity in the traditional developed safety currencies such as the CHF, JPY and USD.
Weaker commodity prices also added fuel to the selling activity on the Aussie Dollar with further media reports Thursday about China’s internal economic challenges. Iron Ore fell more than 1.2% in early trade and is now down well over 10% for the year.
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