Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Wednesday, 16 July 2014

China growth accelerates to 7.5%

Good news for Australia's resources export-focused economy.

From Bloomie:

"China’s economic growth accelerated for the first time in three quarters after the government expedited spending and gave banks more room to lend to counter a property slump.

Gross domestic product rose 7.5 percent in the April-June period from a year earlier, the statistics bureau said today in Beijing, compared with the 7.4 percent median estimate in a Bloomberg News survey of analysts. June industrial production and first-half fixed-asset investment exceeded projections.
Industrial production rose 9.2 percent in June from a year earlier, topping the 9 percent median estimate of analysts and 8.8 percent in May. Retail sales increased 12.4 percent from a year earlier, compared with the 12.5 percent median estimate. Fixed-asset investment excluding rural households increased 17.3 percent in the first half from a year earlier, the statistics bureau said. That compared with the median estimate of analysts for 17.2 percent growth, also the pace in the January-May period."
Huge numbers all round and a lot of iron ore to be exported there. It's important to note that while China's headline rate of GDP will no doubt slide in coming years, 7.5% growth this year is not the same as 7.5% growth last year due to the compounding or snowballing effect. How long before China becomes the world's largest economy at its current rampant rate of growth?

Superior analysis of the data as usual from David Scutt here (I highly recommend subscribing to his rapid fire blog, MarketScuttlebutt):

"Q2 GDP +7.5% (+7.4% in Q1, +7.4% expected)

June industrial production +9.2% (+8.8% in May, +9.0% expected)
June retail sales +12.4% (+12.5% in May, +12.5% expected)
Urban fixed asset investment +17.3% (+17.2% in May, +17.2% expected)"