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Australia

“Chart view” of Australia

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We know Australian dollar is losing its ground recently. It is, in fact, the worst-performed currency in Asia Pacific for year 2008. (It reminds me, it used to be the top performer not long ago 😆 )

I had a look at monthly chart to have a view and feel how bad is the situation right now. Basically, market is wiping out all the gains since Howard government, and the years-long economy honey moon since, approximately, year 2001.

If the currency reflects the economy condition of a country, here is a “chart view” of Aussie economy.

The poor (unlucky ?) Labor party, Mr. Kevin Rudd takes over Australia at the “right time”. Soon after Labour party in charge, we have economy slow down, then collapse of Australia dollar to 5-year low. In short, he takes over Australia at the TOP, well, short term TOP and historical resistance zone. (John Howard took over at the bottom, and support zone though). This cycle should be very close to commodity cycle.

So now, the interesting part is, are we heading back to the previous bottom? or are we able to bounce from this “retracement”? I feel, this will also indicate the duration of Labor party staying in power…

Just my random rant.

Bad coffee exits

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Starbucks pulled out from Australia by closing 61 of 84 stores.

In the case of one American coffee giant, globalisation deserved to fail. Starbucks makes really bad coffee.

Starbucks is almost entirely pulling out of Australia — closing 61 of its 84 stores. In Melbourne, just five of the 16 stores are tipped to remain.

when Starbucks came to Australia to bring coffee and the cafe culture to the masses, it found that we already had it. Particularly in Melbourne, we have better coffee and more relaxing cafes than anything that Starbucks brought with it.

If Starbucks can teach us anything, it is that in the global marketplace, turning up to compete just isn’t enough. You have to be really good.

Full article here

My point here is, Starbucks makes really bad coffee. At least , in Melbourne, I don’t find any reason to buy my coffee from Starbucks.

Rudd understands economy

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My Rudd is going to stay hands off on interest rates to promote competition in the market. He is making a wise and intelligent move. Well, I am not saying the decision is right or wrong, but it shows his understanding of market. Period. Now, I am very interested in his promise on resolving housing afford ability issues.

New Prime Minister Kevin Rudd said Australia was a market economy and it was not the place of government to set prices.

“Maximising competition policy pressure is the right way to go – determining prices at a particular level is not something that any government of this country can do in a market economy,” Mr Rudd said today.

He said he would be concerned if banks lifted their interest rates further than the adjustment made by the Reserve Bank last month – with a hint that squeezing families would be counter-productive.

“Can government of itself mandate what individual commercial banks do by way of their interest rates? No,” Mr Rudd told ABC radio today. “In a market economy banks will make their own determinations on that.”

Rudd stays hands off on interest rates