DelphiNews June 2018

I’m pleased to enclose the June edition of DelphiNews.

Market Update

Highlights:

• Inflation continues to creep higher and is close to or at 2% in major developed markets, although core measures of inflation remain below target.

• Despite slower-than-expected March-quarter growth in the US, there are signs of a stronger June quarter, including improved consumer spending and business investment.

• Tariff threats between the US, China and Europe are yet to be resolved and risk escalating into a trade war that could damage global trade.

• In Italy, the political impasse was finally broken, with a coalition government formed between the two popular right parties, Lega Nord and the Five Star Movement.

• Japan’s economy contracted in the March quarter, bringing into question the efficacy of the Bank of Japan’s quantitative easing measures.

Economic Update

Senior Economist Bob Cunneen discusses why the Australian economy can expect to maintain a reasonable growth speed but is likely to trail in the wake of faster global growth.

After a few years in the slow lane, Australia’s economic growth is accelerating. Australia’s annual growth rate for the year to March 2018 is now registering at 3.1% (red line). Encouragingly, Australia also appears to be finally catching up to global growth which is approaching 4% for the past year (blue line).

Putting the I in Education

MLC's Head of Private Equity, Alicia Gregory explains why they’re supporters of the education industry in China.

For millions of mainland Chinese students, long days filled with rote memorisation and high-pressure testing are part of everyday life. But as the Chinese economy continues to grow, an emerging middle class has developed who have different expectations of the education system for their children that the existing Chinese system simply does not meet.

Please contact us if you have any questions regarding these articles or to discuss your financial requirements.

Regards

Vince Dore CFP
Director