Reserve tipped to bump up rates

Homeowners face finding another $50 a month to pay the mortgage, with the Reserve Bank tipped to lift official interest rates again today as it battles to dampen house prices and keep inflation pressures at bay.

A quarter percentage point rise this afternoon would mean official rates would have climbed 1.25 percentage points since October, adding more than $240 to the monthly repayments on a $300,000 mortgage.

It would be the biggest run of increases in a 12-month period since the Reserve took the official cash rate from 5 per cent to 6.25 per cent between November 1999 and August 2000.

But the decision could be a close call, with signs of softness in the retail and building sectors lifting expectations the Reserve may wait at least another month before moving in the week before Treasurer Wayne Swan hands down the Federal Budget.

At least mortgage holders may be saved from a “super-sized” lift to their repayments, with the NAB yesterday saying it would not increase its rates more than any move in the official cash rate. Its recent policy of matching rate rises had led to more customers.

That prompted Mr Swan to challenge other major banks to follow NAB’s lead.

TD Securities senior strategist Annette Beacher expects the Reserve board to hold rates today.

But Macquarie Bank rate strategist Rory Robertson said the chance of a rate rise was about 80 per cent.

“Interest rates here remain unusually low, our jobs market is strengthening, China and bulk-commodity prices are booming, so, too, local home prices, and the world’s biggest economy increasingly is getting back on its feet,” he said.

A new survey from Dun and Bradstreet of business executives out today shows sales, growth, employment and capital investment expectations all rising. 

Source  :  www.thewest.com.au

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RBA lifts rates again

There’s more pain on the way for Australia’s borrowers with the Reserve Bank today raising interest rates for the third time in as many months.

As widely tipped, the central bank lifted its key cash rate by 25 basis points to 3.75 per cent following its monthly board meeting. It’s the first time the RBA has lifted rates three months in a row. (Click here for economists’ reaction, including Michael Pascoe and Peter Martin.)

”In Australia, the downturn was relatively mild, and measures of confidence and business conditions suggest that the economy is in a gradual recovery,” RBA Governor Glenn Stevens said in a statement accompanying the rates verdict. The central bank’s ”gradual” increases in rates will ”work to increase the sustainability of growth in economic activity,” he said.

For a typical mortgage holder on a $300,000 mortgage, today’s rate rise will add about $47 to monthly repayments, assuming commercial banks match the RBA’s move. Officials for most of the major banks this afternoon said their rates policies were under review.

The Reserve Bank has made regular public comments in recent weeks that it sees no need to keep interest rates at ”emergency” levels as the economy rebounds from a slowdown during the past year. Ric Battelino, the RBA’s deputy governor, last week said the economy’s growth is likely to extend ”for a few more years yet.”

More to rises come

Still, the economic data continue to provide mixed readings. A measure of manufacturing activity in November out today showed the sector continues to grow with companies adding jobs, although the stronger Australian dollar slowed the pace of expansion.

Overall building approvals, meanwhile, surprisingly fell 0.6 per cent in October, according to other figures out today. A 5 per cent gain in approvals for private homes was countered by a 19 per cent drop in permits for flats and townhouses.

Even with today’s rate increase, the Reserve Bank’s efforts to tighten monetary policy are likely to be far from over.

”The big change in this statement was their reference to the increases so far as being material,” ANZ’s head of Australian economics Warren Hogan told Reuters.

”I read that as implying that they’re ready to now sit back and watch how these increases affect the economy. And the hurdle for further rate hikes will be much higher than we have seen so far.

“So I think our view that they’re going to 4 (per cent), 4.25 then sit there for much of the year is the right one. There’s every chance they’ll do it in February and March, although I wouldn’t be surprised if it’s dragged out over a number of months.”

JP Morgan’s Chief Economist Stephen Walters agreed that the RBA may make it four rate rises in a row: “With inflation likely to creep up, and the worst in the economy having passed, there is no need to keep rates at very expansionary levels.”

“We think they will again lift rates in February,” Mr Walters

said. ”The RBA does not meet in January, but I think they will hike when they return after the break. The word ‘gradual’ is still there in the RBA statement and I think they will start going slow in lifting after February.”

Before today’s move, investors were betting that rates would rise to at least 4.75 per cent in a year’s time – equivalent to four more rate rises over the period. Three weeks ago, however, the betting was for rates to rise to 5.25 per cent, indicating confidence in the economy’s strength has recently diminished.

The RBA’s board is not scheduled to meet again until next February.

Political view

Treasurer Wayne Swan said the rate rise would pinch household funds.

”This is tough for families…when rates go up it has an impact on the family budget,” Mr Swan told reporters.

He took aim at old comments from new Opposition Leader Tony Abbott that the government’s billion-dollar stimulus had led to interest rates rises.

”That is laughable and it comes from a political leader who is prone to making erratic statements,” Mr Swan said.

”Mr Abbott is in denial of the fact that this country has performed well in the global recession.”

Even with the latest jump, these rates were last seen in 1967, Mr Swan said.

Mild downturn

A year ago, the Reserve Bank was in the midst of a series of deep interest rate cuts as Australia joined other countries in attempting to limit the damage from the global financial crisis.

Last December, the RBA sliced one full percentage point from its cash rate, lowering it to 4.25 per cent on the way to a fifty year-low of 3 per cent by April. After a pause, the central bank has started to lift rates back towards more normal levels as fears of an economic crunch abate.

”The effects of the early stages of the fiscal stimulus on consumer demand are fading, but public infrastructure spending is starting to provide more impetus to demand,” Mr Stevens said in his statement today.

The jobless rate has been one of the surprises, with Australia’s unemployment holding well below 6 per cent when many had predicted a level in excess of 8 per cent. Business investment has also held up well in large measure due to the sharp rebound in China and India – leaving Australia as one of the few countries to start raising rates.

”Prospects for ongoing expansion of private demand, including business investment, have been strengthening. There have been some early signs of an improvement in labour market conditions,” Mr Steven said. ”The rate of unemployment is now likely to peak at a considerably lower level than earlier expected.”

The RBA believes economic growth ”is likely to be close to trend (in 2010) and inflation close to target.

Market response

In the aftermath of the rates news, the Aussie dollar initially dropped before recovering to about 91.5 US cents in recent trading, close to its level before the RBA statement.

Shares, also turned mildly lower before recovering to be about 0.2 per cent higher for the day with less than an hour of trading left.

Source :   www.theage.com.au

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Fortescue Metals unveils concept for new mine, new rail and new port

The project, known as Solomon is expected to cost around US$3,34bn.

Within the next two years Western Australia’s big new iron ore miner Fortescue Metals Group Ltd (ASX: FMG) will decide whether it will open up a new iron ore mining area in the Pilbara of Western Australia.

The project known as Solomon was detailed at the Sydney Mining Club and was said to have a development cost of A$3.6 billion (US$3.34 billion).

Fortescue launched its operations through the Cloudbreak mine in the Chichester Range to export to China through a port developed by the company at Anderson Point in Port Hedland. The company has started development on its second mine, Christmas Creek, also in the Chichester Range.

Solomon is well west of Cloudbreak. It was indicated the company’s capacity out of Port Hedland may cater only for ore from the Chichester hub, so a second port and new rail link would be required to a Pilbara port at Anketell Point – particularly if Fortescue ramps up beyond 155 million tonnes per annum of export ore.

The cost of developing Solomon would take in A$850 million (US$790.8 million) for the mine, a similar amount for the railway, and A$700 million (US$651.3 million) for processing plant

The company claimed that while a lot more drilling was required the Solomon hub had potential to be much larger than the Chichester Ranges operations, currently mining at a rate of 38 Mtpa and gearing to increase to 95 Mtpa.

The Solomon mine could begin at 60 Mtpa, expanding to 100 Mtpa.

While Cloudbreak and Christmas Creek are bedded iron formations, not mined elsewhere in the Pilbara at this stage, Solomon has a mix in its iron ore geology and includes what is known as channel iron deposits.

Sydney Mining Club delegates were told that exploration in the Pilbara in the past five years has yielded reserves and resources for Fortescue of 6.3 billion tonnes, including reserves of 1.6 billion tonnes.  The discovery cost was put at A2cents a tonne.

Fortescue dominates the landholdings for iron ore in the Pilbara with 17,400 square kilometres, compared to Rio Tinto with 11,000 sq km and BHP Billiton 6,500 sq km.

Fortescue’s holdings include a large number of coastal and offshore tenements, assumedly for ironsands shed over the eons. The company also holds coastal and offshore tenements in New Zealand for ironsands.

Source  :  www.mineweb.co.za

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AirAsia biggest promotion free airfares up for grabs

Free Seats are back! AirAsia, the world’s best low cost airline is today giving away 1 million free seats*, to over 70 hot destinations including China, India, Taiwan, Indonesia, Thailand, Singapore and many more across our extensive network of over 130 routes; stretching across 20 countries.

The free seats promotion kicks off from 11 – 15 November 2009 (booking period) for the travel period from 1 May – 30 October 2010. Guests may log on to http://www.airasia.com or mobile.airasia.com to find out more about these exciting great deals.

AirAsia’s Regional Head of Commercial, Kathleen Tan said, “To usher 2010, this is the biggest and most exciting promotion of the year. With no fuel surcharge, and no administration fee, it’s a real deal, offering fantastic value to our guests. When the economy is tough, people seek cheaper traveling options which offer them better value for money and there is no better option than flying with AirAsia for Free! This is also our gesture of saying a big thank you to our guests and the public who supported and contributed to AirAsia’s success. Without them, we would not have been conferred the recent “Airline of the Year 2009” award from the Centre for Asia Pacific Aviation (CAPA), flying over 80 million guests to date.”

“AirAsia always observe the importance of low fares to ensure everyone can fly; and bringing back our highly popular free seats promotion will give our guests the greatest value ever. What’s more? To compliment the free flights, GoHoliday, AirAsia’s one stop travel portal is also offering sizzling deals and fantastic packages, including “Free Rooms” for over 180 Asia Pacific hotels online at http://goholiday.airasia.com. With this incredible offer, guests can plan their holidays ahead to enjoy great bargains, take this opportunity to be creative and map their holiday routing via AirAsia’s ten hubs (Kuala Lumpur, Kota Kinabalu, Bangkok, Phuket, Bandung, Jakarta, Surabaya and Bali, Penang and Johor) across our network at ultra low fares. For instance, guests from Australia, Europe or the Middle East may explore exotic ASEAN and beyond to some of the world’s most popular island resorts such as Bali, Phuket, Langkawi, and vice versa. With these great deals, AirAsia’s guests with huge appetite for travel will be spoilt for choice as we not only cater to the leisure market but also the adventure seekers, diving enthusiasts, historical and heritage explorers, shopaholics, and keen golfers all within our vast route network.” concluded Kathleen.

Guests can fly from Kuala Lumpur to domestic destinations such as Penang, Kota Kinabalu, Kuching and many more from as low as RM6 (All In Fare)*. Popular international destinations such as Jakarta, Bali, Yogyakarta, Bangkok, Phuket and even Tianjin are offered from as low as RM25 (All In Fare)*.
The best part is that, AirAsia’s long haul affiliate, AirAsia X recently launched routes such as Abu Dhabi, and Chengdu are also offered within the same period with special fares from as low as RM 99.00* (All In Fare)* only. AirAsia X highly in demand “Kangaroo Routes” to Australia such as Gold Coast, Melbourne and Perth are offered from as low as RM149.00 (All In Fare)* and the popular London route is also on offer from as low as RM499 (All In Fare)*.

Promotional seats are limited and available on first-come, first-served basis and made exclusively online via http://www.airasia.com and mobile.airasia.com.

Stay tuned! Follow AirAsia on Twitter, Facebook, and AirAsia’s Blog where we will provide real time updates on our latest promotion.

Source  :  www.tourismtravel.com

 

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Increase in employer-sponsored skilled migrants

A new report has found Australia’s migration program is more effectively meeting the needs of employers with a 60 per cent increase in the number of employer-sponsored skilled migrants to Australia in 2008-09 compared with the previous year.

The Report on Migration Program 2008-09 shows that the Rudd Government’s targeted approach to overseas workers is helping to fill critical skills gaps in the healthcare, engineering, financial services and IT sectors.

The Minister for Immigration and Citizenship, Senator Chris Evans, said that changes introduced in January including the Critical Skills List (CSL) of high value occupations and prioritising employer-sponsored or state/territory-sponsored skilled migration visa grants were having a significant impact.

Overseas workers who were sponsored by employers comprised 33 per cent of the 2008-09 skill stream compared to 22 per cent in 2007-08 and 17 per cent in 2006-07.
“A properly targeted migration program will ensure we have the right sized and appropriately skilled labour force to meet Australia’s needs now and into the future as our economy recovers and grows.”

The Government cut the 2008-09 permanent skilled migration intake in March 2009 by 14 per cent from 133 500 to 115 000 and reduced planning levels for the permanent skilled migrant intake in the overall 2009-10 migration program to 108 100 places.

“This is in direct response to the economic slowdown and represents an overall drop of almost 20 per cent on previous planning levels,” Senator Evans said.

“The migration intake in the coming year reflects the economic conditions while ensuring employers can gain access to skilled professionals in industries still experiencing skills shortages such as healthcare and engineering. “The reduction is being achieved through a cutback in places in independent skilled migration rather than in the high-demand employer-sponsored category or in areas in which Australia has critical skills shortages.”

Across all permanent skilled visa categories, the top three occupations for successful applicants were accountancy (6238), computing professionals (3879) and registered nurses (3355) while the top three countries of citizenship under the skill stream were the United Kingdom (23 178), India (20 105) and China (13 927).

“Australia’s migration program is better targeting the needs of Australian employers who are still experiencing skill shortages,” Senator Evans said.

Source  :  www.manmonthly.com.au

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Marriage scamming for permanent residency

Immigration to our shores is running at record levels and so too is the boom in illegal immigrants.

Some are scamming permanent residency is to catch and marry single Aussies. Immigration officials are cracking down on fake marriages, but  sometimes impossible to know when love is true or false. 

Over the last ten years spousal visa applications to Australia jumped from 26,000 to 40,000 a year. Many phoney fiancés and spouses were kicked out last year. 

Less than three per cent of applicants are investigated. 

The process requires foreign spouses to live with their partner for two years and they may be tested on their truthfulness by the Bona Fide units, set up in states across the country.

Differentiating between love and fraud is not a given, what we are interested in determining is that the evidence and the paperwork and the documentation put before us is true and accurate that it is not a forged document. 

They’re even more brazen in India where migration agents and internet surfers state plainly what they want, with posts including: “Paper marriage for Australia” and “Looking for a girl to do a paper marriage just to get residency in Australia.” 

The Times of India newspaper detailed how brides and grooms are contracted to marry, just so they can move here. 

If they are operating in India, or in China, or in Canada, or in the UK or anywhere overseas, our laws don’t control their activities

Act, under visa fraud it can include cancellation of the visa, and ultimately removal from the country. In the least we can refuse and we often do in 3000 instances to grant a visa in the last financial year. 

Dob-In Line: 1800 009 623

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Skilled Migration: Dispelling the Myths

Source  :  Alan Collet   www.gomatilda.com

Since Australia’s Immigration Minister announced changes to the skilled migration program at the end of last year there has been a lot of misunderstanding among intending skilled migrants. In this article we try to dispel some of the myths.

In no particular order, here are some of the comments we have heard in recent months:

Australia has stopped accepting skilled migrants

Nothing could be further from the truth. In fact, Australia’s skilled migration program (the amount of visas the Immigration Minister requires his Department to grant annually) is the highest on record this year, with a planned 115,000 skilled visas to be granted in the year to 30th of June, 2009.

The skilled program for 2009/10 is planned to be 108,100, which is the third highest program on record.

By way of comparison the skilled program in the last few years has delivered the following outcomes:

 
2007/08: 108,540
– 2006/07: 97,920
– 2005/06: 97,340
– 2004/05: 77,880

My occupation is not on the Critical Skills List and I can’t be sponsored by a State or Territory Government. That means I will never get a visa.

It is true to say that the Minister’s announcements have impacted quite significantly on the processing of skilled visas, with occupations on the CSL and State/Territory Sponsored skilled visa applications being the only offshore skilled visa applications that are being processed to a decision at the moment.

However, there will come a time (we anticipate in the next 3 to 4 months) when Department of Immigration case officers will have to move onto the next category on the Minister’s priority list, namely applications where an occupation on the Migration Occupations in Demand List (or MODL) is nominated.

We anticipate that many applicants with MODL occupations will have sought sponsorship from a State or Territory Government (as MODL occupations have tended to be included on their Wanted Skills Lists) and as such we think it likely that remaining skilled visa applications will start to be looked at with a view to visas being granted during the.

It should also be remembered that when the total skilled migration program was in the region of 70,000 annually processing times were typically 9 to 12 months – even allowing for heightened demand in recent years the large program total that is now available should allow visa application processing times to be closer to 12 months over the next year to 18 months.

And as ever, the sooner a visa application is lodged the sooner a visa will be granted.

I won’t be able to obtain sponsorship from a State or Territory Government

To a verying degree all of the States and Territories in Australia are sponsoring skilled individuals for the grant of visas. Some are sponsoring for the grant of provisional subclass 475 visas (which provide for permanent residency via a second visa application once subclass 475 visaholders have been residing and working in a regional area for the required period), while others are sponsoring for subclass 176 permanent residency visas.

The key question for intending skilled migrants is therefore which States and Territories are sponsoring my occupation, and for what subclass of visa.

If I am sponsored by a State or Territory Government I will have to live there while I remain in Australia

Technically, that is not the case. If applying to a State or Territory Government for sponsorship you will be asked to provide information that demonstrates you are genuine in your intentions to reside in that State or Territory.

Indeed, in most cases you will be asked to sign an undertaking to reside in the sponsoring State/Territory for at least 2 years.

We would add that when applying for sponsorship you should be completing the application in good faith, with a genuine intention to reside in the State or Territory to which you are applying.

Note also that if applying for sponsorship of a subclass 475 (provisional) visa you will be subject to a visa condition that requires you to live and work in a regional area of Australia, and that you can anticipate that this will be checked when you apply for permanent residency in due course. 

Employers are no longer able to sponsor individuals for skilled visas

This comment is typically heard in the context of subclass 457 visas – which is the long term temporary residency visa.

It is fair to say that Australia’s Immigration Minister has sought to change 457 visa sentiment amongst employers by issuing “clarification” in the last few months in the form of policy guidance to his Department. This has included (amongst other things) requiring employers to more clearly demonstrate the benefit to Australia arising as a consequence of the employment of the nominated individual following the grant of a 457 visa.

However, this amendment of policy settings has not caused a cessation of 457 visa grants – far from it. Indeed, Go Matilda has had many 457 visas granted in the last few months.

Even if I obtain a visa, the global economic crisis means I won’t be able to get a job when I move to Australia

The Australian economy has held up remarkably well in comparison with other first world countries, and indeed has thus far avoided a technical recession. This is quite possibly due to its closer associations economically with South East Asia and China, and the financial boost associated with a growth in population, most notably through the large migration programs of the last few years.

By contrast the UK has found itself more closely aligned with the fortunes of the US, and with the collapse of wealth through banking and housing failures.

No-one can say that any one individual will be certain to secure employment when they move to Australia. However, the prospects for work are generally considered to be brighter in Australia than in the UK, US, etc, which should augur well for intending migrants.

I won’t be able to sell my house and the GBP – AUD exchange rate is awful

Yes, the economies of the world are in a dreadful state at the moment, and the bottom has fallen out of the housing market in the UK.

However, there is no requirement for you to move to Australia as soon as your visa is granted – permanent skilled visas require you to enter Australia by an initial entry date, which is usually 12 months from the earlier of the date of police clearance certificates and the date medical examinations were attended.

That required initial entry can be on a holiday, and the permanent move can be a few years later – at any time up to 5 years after visa grant – by which time we suggest the economies of the world and the currency exchange rate will be somewhat different, most probably better than they are today.

This means that applying for a skilled visa now rather than waiting could actually mean that you find yourself migrating at a better time than those who have been granted their visas in the last 12 months.

If you are a skilled individual and are contemplating a move to Australia some of the above issues might have crossed your mind.
If you would like to talk about your concerns and to discuss the migration process more fully please contact us.
Go Matilda has many years of experience assisting with Australian visa applications, and we will be pleased to have a free initial discussion about your situation, your visa strategy, and how we might help, after which we can send you a no obligation proposal as to our fees.

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Australia stocks close at seven-month high

The Australian share market closed at its highest level in nearly seven months as better-than-expected local and overseas economic data heartened investors and boosted resources stocks.

At the 1615 AEST close, the benchmark SP/ASX200 index had lifted 60.9 points, or 1.56 per cent, to 3955.3, while the broader All Ordinaries index advanced 61.7 points, or 1.59 per cent, to 3949.6 points.

The last time the local market had closed at those levels was in mid-November 2008.

The local bourse rose as a narrowing current account deficit and improving trade position raised expectations that the Australian economy had managed to avoid a contraction in the March quarter.

Building approvals rose for the third consecutive month as low interest rates and grants from the federal government enticed home buyers.

Resources stocks have been lifted by data released by China on Monday showing that China’s manufacturing activity had expanded in May for the third consecutive month.

In the US overnight, better-than-expected readings on manufacturing, consumer spending and construction spending boosted Wall Street.

The Reserve Bank of Australia, which kept interest rates unchanged on Tuesday, also said there was evidence the global

economy was stabilising and the turnaround was clearest in China.                                                                                                                            

City Index markets strategist Alex Douglas said the positive data releases over the last few days were driving the market.

‘If we go back to yesterday, there was positive data from China.

‘That was backed up with some manufacturing data in the States overnight which was slightly firmer than anticipated,’ Mr Douglas said.

Locally, the building approvals figures were also positive.

‘So little bits of evidence like that of growth emerging – that’s helping to support the markets,’ Mr Douglas said.

In the resources sector, global miner BHP Billiton gained 96 cents to $36.70.

Rio Tinto jumped $2.67 to $69.00 after the company announced it had settled terms of iron ore contracts with many Asian customers.

Oil and gas producer Woodside Petroleum rose 88 cents to $44.90 as it said it planned to retain at least 50 per cent equity in the second and third stages of its Pluto liquefied natural gas (LNG) development at Karratha in Western Australia.

Santos firmed five cents to $14.90.

Among the major banks, Commonwealth Bank strengthened 17 cents to $36.33, Westpac surrendered 18 cents to $18.76, ANZ gave away 21 cents to $15.98, and National Australia Bank gained 28 cents to $22.80.

Investment bank Macquarie Group was up 91 cents at $36.30 as it said it was not aware of any reason or information not already announced that could have prompted a lift in its share price since late last week.

On Wall Street overnight, the Dow Jones Industrial Average index rose 221.11, or 2.6 per cent, to 8,721.44.

In the gold sector, Lihir slipped one cent to $3.30, Newmont lost 24 cents to $6.00, and Newcrest picked up 15 cents to $33.89.

The price of gold in Sydney at 1628 AEST was $US973.85 per fine ounce, down $US10.25 on Monday’s close of $US984.10.

Telco Telstra was off two cents at $3.07, and Optus-owner Singapore Telecommunications shed six cents to $2.50.

Retailer Woolworths ascended 60 cents to $26.00, and Wesfarmers, which owns Coles, was $1.09 heavier at $23.37.

In the media sector, News Corp was 25 cents richer at $14.68, and its non-voting stock improved 20 cents to $12.75.

Consolidated Media lifted three cents to $2.38, and Fairfax gained six cents to $1.26.

Among other stocks, automotive brakes supplier Pacifica Group was steady at 13.5 cents after it said the bankruptcy of car-making giant General Motors Corp in the United States was likely to hurt Pacifica’s earnings in 2009.

The top-traded stock by volume was property developer GPT group, with 74.74 million shares worth $36.4 million changing hands.

GPT was 1.5 cents lower at 48 cents.

Preliminary national turnover was 2.43 billion shares worth $5.85 billion, with 657 stocks up, 412 down and 324 unchanged.

Source www.bigpondnews.com

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Giant liner will dock in Freo next year

FREMANTLE will host the biggest cruise liner ever to visit WA when the Queen Mary 2 squeezes into the harbour next year.

The 152,000-tonne ship, the largest of any type to sail into WA, will be visiting on March 14, 2010.

Built in 2003, the 3000-passenger liner has 10 restaurants, five pools, 8000-book library, casino, nightclub and even a planetarium.

On offer is a 30-night fly-cruise-and-stay deal that includes a 29-night cruise visiting China, Japan, New Zealand, Sydney and Adelaide.

Cruise Express is offering the package, which includes meals, for $8795 per person, twin-share.

www.inmycommunity.com.au

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