Proposed second casino building with six star-rated hotel.
We certainly don’t need a second casino to be built on what remains the last prime real estate along the Sydney harbour front. Is it simply money talking again? The NSW Liberal Government is currently in dire need of funds due largely to the huge budget hole inherited from the previous Labour Government and their inability to manage money. Thanks to the Labour Party, the current NSW Liberal state Government is broke and is now considering offering this remaining real estate to James Packer, one of the richest men in Australia. Right now it is truly a rich man’s world where our politicians and government are essentially controlled by the rich.
I for one hope that there will be a public outcry against the last prime harbour front real estate being, once again, delivered into the rich man’s hands. The site should instead be converted into a public space similar to China’s Tiananmen Square or New York’s Central Park; it could even be opened up as a new location for tourism.
There is no doubt the design of the proposed casino building is aesthetically impressive and could even become one of Sydney’s iconic buildings, however, of what purpose does this second casino serve? Because of the distance problem, i don’t think Sydney casino can compete against its counterparts like Singapore’s Marina Le sands and Macau’s casino. Rather, we would be better off with a second international airport or, at the least, an overhaul of the existing one in order to raise it to world-class standard considering the amount of flights we have in and out of this beautiful harbour front city.
I would have hoped that the funds raised from selling off the site could be utilised to construct the Sydney’s second airport but this doesn’t seem to be the case. Our glorious premier of NSW has said that Sydney does not require a second international airport. Furthermore, he has announced that if a second airport were to be built, it should be located in Canberra, 287 km away and linked to Sydney via bullet train. I don’t know about you but traveling 287 km on a bullet train to get to the airport seems rather stupid and inefficient, especially when you consider Sydney’s population density in comparison to Canberra. You need mass commuters (like in China) to travel on bullet train otherwise it may not prove to be economically feasible
One of the case studies reviewed in my second year of University in 1978 was “the need for Sydney’s second international airport”. Thirty years later, our government is still debating this need and the airports around Australia far and fast becoming old, out-dated and well below a world-class level. Take Melbourne’s international airport as another example, it also looks like a huge bus terminal although it is slightly larger than Sydney’s due to housing both domestic and international terminals whereas Sydney's are separated.
When Communist China decided to build the Beijing International Airport, it took them only 7 years from the initial environmental studies to building completion. Meanwhile, our democratic process over the past three decades has not even decided whether one should be built or not. Perhaps it’s about time to stop debating and actually get something done.
World Class Beijing International Airport- one of the top ten in the world
Beautiful Sydney Harbour but pathetic ‘no class’ Sydney International airport
Let’s talk about financial market
Image: www.smh.com AUD plunges like a falling knife.
About AUD and USD: Aussie plunge to new 11 month low as its US counterpart USD gains more strength. The currency fell as low as 97.98 US cents in overnight trade, a level not seen since early June 2012. The Aussie dollar has dropped 5 per cent this month. AUD and resources stocks started tumbling amid more signs of a slowdown in China and after last week's interest rate cut and budget deficit announced by the Reserve Bank. As mentioned, capitals start to flow back to U.S. shore in the last 7 months. It seems business sentiments in U.S have improved but I think it is a wrong perception. Let’s reflect on last night poor data:
Consensus for Weekly Initial Jobless Claims was an increase to 330,000 versus a revised 328,000 last week. Actual was an increase to 360,000.
Consensus for April Housing Starts was a decline to 950,000 units versus a revised 1,021,000 units in March. Actual was a decline to 853,000 units.
The Philadelphia Fed's Business Outlook reported that manufacturing activity in the Philadelphia region contracted in May. The index fell to -5.2 from 1.3 in April well below consensus expectation of +2.5%
About China and Japan: Foreign direct investment slowed (to 0.4% as compared to expected 6.2%) last month in China and in fact, some capitals start to flow back to U.S. China April foreign direct investment raises growth concerns in China. The Japanese economy in Q1 expanded at its fastest pace in a year due to massive stimulus. Japan Q1 GDP grew +0.9% in the last quarter, better than expectations of +0.7%. It seems massive stimulus is working on short term basis.
About Europe: AS mentioned, Euro zone is still in big trouble. The Euro zone Mar trade balance widened to +18.7 billion Euros, more than expectations of +11.5 billion Euros. France falls back into recession with the last quarter growth of - 0.5% and Germany GDP growth also slowed to 0.5%.
About U.S stock market: Yesterday, Philadelphia Fed President Plosser told reporters in Milan, Italy that the current Fed QE pace was appropriate for six months ago, but recent economic data means the Fed should taper QE in June. Should QE start to taper off, I believe that will start the official correction of the Dow Jones and global indices.
The DJ is down about 40 points and I can see that we are approaching monthly resistance at the 15400 level in my work. Will it fail from here to start some sorts of correction?
The Dow Transports are down 4.64 at 6515.24 touching 6538.04, a new bull market high. Bullish reverse 'head and shoulders' patterns have formed: 1) From July, 2011 to present and 2) May, 2008 to present. From the upside measurements, the bull is well alive the broad-based NYSI (New York Stock Exchange Index) is down 21.55 at 9529.61, holding yesterday's new bull market high of 9568.82. According to Dow Theory, Dow Transports is the leading indicator.
About Gold: There has been heavy selling from hedge funds in the past few days, and I can see that this rotation out of precious metals will continue but meanwhile, I see a technical rebound soon. Gold last night has hit a low of 1369 on waning investment demand for the precious metal, but recovered quickly to close at 1385. 1321 bottom will be re-tested. How soon? I reserve it for my subscribers.