Today's News - Wednesday 27 May 2020
Today's News - Wednesday 27 May 2020
Our Backyard (Australian News)
China's Commerce Minister has weighed into a trade dispute impacting Australian farmers, saying Canberra has launched more than 100 trade investigations since the two countries established diplomatic relations. His comments came as Beijing slammed Home Affairs Minister Peter Dutton over his criticism of Victoria's trade deal with China under its Belt and Road Initiative.
Key points:
- China's new tariff on Australian barley will likely cost farmers hundreds of millions of dollars
- Beijing also responded to Home Affairs Minister Peter Dutton's criticism of Victoria's engagement with the Belt and Road Initiative
- Australia's calls for an investigation into the origins of coronavirus has sparked diplomatic tensions
Continuing headlines this morning on Victoria not consulting the Department of Foreign Affairs and Trade before signing a controversial infrastructure deal with the Chinese government last year, leaving senior officials concerned it could undermine Australia's push to counter Beijing's growing influence in the region.
In response to Josh Frydenberg’s announcement of downgrade in Corporate respondibilty during Covid-19 period. In response, Shareholder advocates have warned the Morrison government's temporary weakening of rules requiring listed companies to keep investors informed threatens to harm market confidence and could blemish the Australian sharemarket's strong reputation for transparency.
A new social distancing squad armed with thousands of CCTV cameras will be the eyes and ears of the NSW government, monitoring passengers across Sydney's rail network. The 80-strong team will work to ensure strict new physical distancing measures are maintained on trains, with a quarter of staff accessing up to 11,000 cameras across the city's stations.
Prime Minister Scott Morrison says the Government will shelve contentious "union-busting" laws as a sign of good faith, while pointing towards an overhaul of Australia's industrial relations system.
Key points:
- The Government will not pursue a second vote on its Ensuring Integrity Bill, which was strongly opposed by unions
- Mr Morrison says the current industrial relations system is not fit for purpose
- The Government will hold a number of consultations on the issue ahead of the October Budget
Parents denied ‘free’ childcare as operators warn JobKeeper workers are refusing to come into work. The Prime Minister spent $1.6 billion to deliver “free” childcare but now parents are being left in the lurch, told not to turn up until July.
Darwin-born businessman Andrew Liveris, previously hand-picked by US President Donald Trump to head the American Manufacturing Council, will co-chair the NT's new Economic Reconstruction Commission.
Key points:
- The NT Government announced seven members of the Economic Reconstruction Commission on Friday
- Today the eighth member, Andrew Liveris, was confirmed
- Mr Liveris and former NT chief minister Paul Henderson are co-chairs
An Australian SAS operator is under investigation for killing an Afghan man his comrades say was an unarmed and intellectually disabled civilian, the ABC can reveal.
Key points:
- The Australian soldier is currently being investigated by the Inspector-General of Defence and the AFP for two allegedly unlawful killings in Afghanistan
- He was stood down from duty after Four Corners aired 2012 footage of him shooting an unarmed civilian
- The special forces operator was awarded the Commendation for Gallantry for his service in Afghanistan
Australia's largest organic dairy company has been placed into receivership with creditors and farmer-owners owed millions. The Geelong-based Organic Dairy Farmers of Australia (ODFA) is 100 per cent owned by 40 family dairy farms across Victoria and north-west Tasmania.
Key points:
- ODFA produces True Organic butter and supplies milk for FiveAM Yoghurt, Lemnos, and Pure Organic Milk
- It owns a milk bottling factory at Geelong where it also processes butter and cream, employing 22 people and nine contractors
- It's owned entirely by farming families who say they're owed thousands of dollars in unpaid milk cheques
An Israeli court has ruled former Melbourne school principal Malka Leifer is mentally fit to be extradited to Australia where she faces 74 charges of child sexual abuse. It means Israeli lawyers can pursue an extradition request lodged by Victoria Police.
Key points:
- Malka Leifer is accused of abusing three sisters during her time as headmistress of the Adass Israel School.
- She allegedly fled to Israel when she learned a complaint to police was being prepared
- Her lawyers have claimed that she suffers from clinical depression and post-traumatic stress disorder
South Australia has recorded its first COVID-19 case in 19 days — an overseas traveller who was given an exemption from quarantine.
Key points:
- A woman in her 50s who recently returned from overseas has tested positive
- SA Health said the woman had a "significant number" of contacts
- The positive test comes amid an easing of restrictions in SA
Serious questions have been raised about why a live export ship, now the source of a COVID-19 outbreak, was allowed to dock in WA. Premier Mark McGowan said the Al Kuwait departed the United Arab Emirates on May 7 with a total of 48 crew on board and of seven who underwent tests this morning, six have tested positive for COVID-19. Those six men have been removed from the ship and moved to a hotel in Perth for quarantine and monitoring.
Just over one-third of Australians think the JobSeeker allowance should be lowered as the economy improves, new data suggests, despite the payment being due to halve in September.
Key points:
- The JobSeeker rate is due to be reduced to $550 a fortnight in September unless the Government intervenes
- A new survey suggests 34 per cent of people believe the rate should be lowered when the economy improves
- Prime Minister Scott Morrison has said the $1,100 payment could be a disincentive to find work in normal times
A Queensland senator has accused the federal government of "co-ordinating an attack" on Premier Annastacia Palaszczuk's border closures ahead of the state election in October.
The leniency of council rangers who issued 75,000 fewer parking fines across NSW last month than in the same period last year is about to end. Ten Sydney councils, including Mosman, Sutherland, City of Sydney, Northern Beaches and Waverley, took a light-touch approach to enforce parking rules in April issuing less than 10 per cent of the fines they did in April 2019. However, some councils, such as Bayside, reduced the number of fines issued by just a third.
Australia's superannuation sector has seen its worst quarter on record, with account balances plummeting by over 10 per cent and the sector's total assets shrinking by almost 8 per cent. The Australian Prudential Regulation Authority said significant downturns in global financial markets caused by the coronavirus pandemic had wiped 10.3 per cent from retirement savings account balances in the March quarter, with the sector's total assets shrinking by $200 billion to $2.7 trillion.
Surgical masks have washed up on Central Coast beaches after a cargo ship lost 40 shipping containers off the NSW coast in wild weather.
Tasmanian Premier Peter Gutwein has called for his counterparts to end their one-upmanship around the issue of state border closures. Mr Gutwein on Tuesday indicated some of the island’s coronavirus restrictions could be eased ahead of schedule before the June long weekend.
Two people charged after Sydney baby formula crime syndicate uncovered. A man and a woman have been charged with running a baby formula crime syndicate in Sydney, with police seizing 250 tins and $45,000 in cash.
Paraplegic man robbed at ATM by two men in Sydney. Police are searching for two males who robbed a disabled man withdrawing cash from an ATM in the Sydney CBD on the weekend.
State Revenue Office: $100 million waiting to be collected by Victorians. Australians have been urged to visit a government database to see if they’re owed cash, with one woman sitting on an unclaimed $994,994.
World News
President Xi Jinping says China will step up its preparedness for armed combat and improve its ability to carry out military tasks, as the coronavirus pandemic is having a profound impact on national security, state media reported.
Key points:
- China's relationship with Western powers is currently strained due to the coronavirus pandemic and trade
- China has also proposed new security laws that may curtail freedoms in Hong Kong
- Against that backdrop President Xi Jinping has said the military needs to up its preparedness for armed combat
Moreover, China’s state-run newspaper has taken a swipe at “China bashers” and accused them of hypocrisy in the latest fiery exchange. An editorial published on China Daily on Tuesday night entitled “China-haters’ hypocrisy knows no bounds” takes aim at US and UK leaders who have spoken out against new security legislation designed to crack down on protests in Hong Kong.
North and South Korea violated the armistice agreement that governs their shared border when their troops exchanged gunfire earlier this month, according to the US-led United Nations Command (UNC).
Key points:
- North and South Korean troops fired at each other on May 3
- It broke an armistice agreement between the two countries, which has been in place since 1953
- Both countries are technically still at war with each other
The World Health Organization (WHO) has warned Brazil against reopening its economy before performing more testing to control the spread of the COVID-19 pandemic.
Key points:
- WHO warns Brazil against reopening its economy as coronavirus cases climb
- Brazil reported 807 coronavirus-related deaths in 24 hours, surpassing the US
- It has now been marked the second-worst-hit country, with about 375,000 cases
A junior British Government minister has quit over Prime Minister Boris Johnson's failure to fire his top aide for allegedly breaching coronavirus lockdown rules. Mr Johnson has stood by Dominic Cummings over his decision to drive 400 kilometres to his parents' house at the end of March, despite a national order for people to remain at home.
Key points:
- British Government adviser Dominic Cummings allegedly breached coronavirus lockdown measures in March
- A chorus of criticism was unleashed after his travel during lockdown was revealed by British media this week
- Scotland Minister Douglas Ross has resigned from the Johnson Government over Mr Cummings' behaviour
Japan has lifted a nationwide state of emergency, with the Prime Minister Shinzo Abe declaring the country's 'unique' approach to coronavirus has mostly contained its spread in just six weeks.
Key points:
- Japan has experienced about 840 COVID-19 deaths
- The disaster declaration has now been lifted in all 47 regions
- The world's third largest economy is now in a technical recession
Hong Kong leader Carrie Lam says Beijing's proposed national security laws will not trample on the city's rights and freedoms and has called on its citizens to wait to see the details of the legislation.
Key points:
- Carrie Lam says it's best to wait to see the details of the legislation
- The national security legislation for Hong Kong aims to tackle subversion
- Thousands in Hong Kong have already protested against the new laws
A warning has been issued over “unusual and aggressive” populations of rats who are being pushed into new areas due to restaurant closures. The latest health warning from the US Centers for Disease Control and Prevention (CDC) said the rodents have been starved of restaurant leftovers over the past two months and will likely make themselves known.
Covid-19 Update
- The Spanish Government has declared a 10-day official mourning period from Wednesday to honour the nearly 30,000 people who have died from coronavirus in one of the world's worst-hit countries. The period will end with an official ceremony led by the head of state in remembrance of the 26,834 fatalities recorded in the country. Spain has reported a total of 235,400 confirmed cases of the disease.
- Canadian soldiers helping to manage the coronavirus outbreak in aged care residences have reported horrific conditions to Prime Minister Justin Trudeau. A report by the armed forces on five of the worst-affected Ontario homes revealed residents were left in dirty nappies with "significant faecal contamination," as well as cockroaches and ants in rooms.
- JK Rowling has published the first two chapters of a fairy tale called "The Ickabog" online for children in lockdown.
- New York State Governor Andrew Cuomo says it is time to focus on relaunching New York City's economy after weeks of declining deaths and hospitalisations. After ringing open the stock exchange, marking the reopening on the trading floor, the Democratic Governor laid out a plan that includes accelerating major infrastructure projects and tackling transmission of the new coronavirus in the hardest-hit neighbourhoods.
- As the furore surrounding UK PM Boris Johnson's senior aide Dominic Cummings continues — with Scottish junior minister Douglas Ross resigning over Mr Cummings' travel during the lockdown — one man sunk the boot in further.
- Saudi Arabia will allow mosques to open for Friday prayers as the kingdom eases restrictions on movement. Mosques will be authorised to open 20 minutes before Friday prayers and should close 20 minutes after they finish, state TV said on Twitter, citing the ministry of Islamic affairs.
- Britain's Health Minister Matt Hancock has touted the benefits of the drug remdesivir for COVID-19 patients, as the UK begins using it to treat coronavirus patients.
Buses and trains reach capacity in Sydney during afternoon peak. A visual model shows how easily a virus can spread on public transport if social distancing is not enforced, as real-time data shows Sydney services at capacity.
Property news
Independent auditors will investigate more than 20 planning decisions and developments in Melbourne’s southern suburbs, many involving the carving up of the city’s green wedge. Kingston council on Monday night voted to hire specialist lawyers to look at more than 20 projects from as long ago as 2004, including matters linked to allegedly corrupt developer John Woodman and his associates, including lawyer Megan Schutz, lobbyist and former local Liberal MP Lorraine Wreford, and Labor lobbyist Phil Staindl.
End of COVID-19 epidemic in traditional real estate selling season of spring is set to boost market. Australia’s traditional home selling season is set to boom this year as it slingshots off the back of the nation’s coronavirus recovery.
Queensland’s most expensive houses: Gold Coast beachfront mansion sells for $25 million.
SALES
Canterbury
A medical clinic at 215 Canterbury Road has been sold in an off-market deal for just under $4 million. Demonstrating on-going investor confidence in healthcare assets, the property sold on a passing yield around 3 per cent in a deal handled by CBRE's Josh Twelftree, Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto.
Cheltenham
A strata office just near Southland at 1253 Nepean Highway has sold for $238,000. Suite 7, a 52 sq m space, was purchased by a psychologist to accommodate their growing practice. The transaction was negotiated by Darryl Lever from Nichols Crowder.
Clayton
A standalone shop in the tightly held retail strip at 350a Clayton Road sold for $1.55 million. Offered with vacant possession, the 192 sq m shop transacted to a local food-based owner occupier in a deal negotiated by James Glen from Nichols Crowder.
Croydon
A freestanding medical clinic at 383-387 Dorset Road, leased to Lifecare Sports Allied Health Service, has sold with a short settlement for $2.33 million on a yield of 5.7 per cent. Agents involved in the deal were Alex Ham and Andrew Greenway from Gross Waddell and Benjamin Klein from Barry Plant Commercial. The buyer was represented by Mark Bond from Facey.
LEASES
Hawthorn
A former cafe across the road from Swinburne University has been released to a new operator despite the COVID-19 lockdown, although the rent is deferred until the government restrictions on food businesses are lifted. The single-level property at 460 Burwood Road was leased through Gorman Kelly's Gerry Gleeson for three years at rent of $45,000 net per annum.
Richmond
We Are Digital is relocating from South Yarra to a warehouse conversion at 182 Stawell Street. Formally the home of the Project Group, the digital player signed a three-year lease over 500 sq m at net face rent around $600 per sq m, Colliers International's Chris Meehan said.
Melbourne
JLL's Andrew Hayes and Alexandra Harper have negotiated a lease for 148 sq m of office space to new tenant Mulan Group at level 5, 10 Queen Street. The 6.5-year lease on behalf of building owner Riverlee is valued at $470 net per sq m.
Bayswater
Vathey Pty Ltd has signed a three-year lease for a 600 sq m warehouse/office at 63-71 Bayfield Road for rent of $55,000 per annum, JLL's Simon Wellock and Matt Allwood said.
Cremorne
The Untitled Group will be relocate from Prahran to a new building at 15 Dover Street. Untitled signed a five-year lease over 350 sq m at net face rent around $600 per sq m. "We're continuing to see innovative businesses seek creative space in great locations despite current economic conditions," Colliers International's Chris Meehan said.
East Melbourne
Fairfields Lawyer will move into a 131 sq m office at 404 Albert Street in a five-year lease negotiated by JLL's Matt Szakiel. The lease in the fully refurbished heritage building was struck at at $350 gross per sq m on behalf of the building owners, the Catholic Archdiocese of Melbourne.
Parkville
JLL's Shane Keogh has negotiated a lease over an 176 sq m office at 369 Royal Parade to PolyActiva. The three-year lease, for building owner Riverlee, is valued at $370 net per sq m. PolyActiva is an Australian-based biotech firm.
In the Markets
Wall Street jumped higher overnight as it returned to action following the Memorial Day holiday, the S&P 500 breaking through the 3000 point barrier for the first time since March before a late dip. The ASX is due to retreat after Tuesday's 2.9 per cent surge higher, with futures at 7am AEST pointing to a drop of 63 points, or 1.1 per cent, at the open. The AUD/USD was the currency markets outperformer. It surged by as much 2 per cent during Wall Street trade, to touch its own 2 month high.
Commodity markets also showed signs that traders are willing to take a punt on a global growth rebound. The Bloomberg Commodity Index climbed by over 1 per cent. Industrial metals continued pick-up off their lows, with copper prices popping 1 per cent in overnight trade, and oil prices extended their recent rally.
ASX futures down 67 points or 1.2% to 5740 near 7am AEST
AUD +1.7% to 66.56 US cents (Overnight peak 66.75)
On Wall St: Dow +2.2% S&P 500 +1.2% Nasdaq +0.2%
In New York: BHP +1% Rio -1.3% Atlassian -5.2%
In Europe: Stoxx 50 +0.9% FTSE +1.2% CAC +1.5% DAX +1%
Spot gold -1.1% to $US1713.25 an ounce at 2.40pm New York time
Brent crude +2% to $US36.25 a barrel
US oil +3.5% to $US34.42 a barrel
Iron ore -2.4% to $US95.28 a tonne
Dalian iron ore -2.7% to 687.5 yuan
LME aluminium +0.9% to $US1520 a tonne
LME copper +1.4% to $US5361.50 a tonne
2-year yield: US 0.17% Australia 0.25%
5-year yield: US 0.35% Australia 0.38%
10-year yield: US 0.70% Australia 0.88% Germany -0.43%
US prices near 5pm New York time
Michael Tran
Director Relationships
Judo Bank