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1. Housing heading higher…

CoreLogic’s latest data shows Australian house prices climbed 1.5% on average in September, with Sydney homes up 1.9%. The gains take average housing values 20.3% higher over the past year and 17.6% higher in 2021. The annual growth rate is the fastest since 1989.

Meanwhile the number of residential building approvals in Australia bounced in August, with detached house and higher-density approvals both higher. Total housing approvals are now up 31% y/y, and detached up 24% y/y.

Source: UBS, CoreLogic

2. Environmental compliance dilemma…

China is continuing to assess the environmental impacts of its industries. This week we saw China announce they would move from 6 SOE Rare Earth producers to 2 – one in the North and one in the South. The merger is believed to have been driven by environmental compliance. This is big news, and should be a positive for NdPr pricing, which portfolio company Lynas produce.

It comes as China’s demand for thermal power has never been higher, due to their strong economic recovery post Covid. We’ve heard reports some employers are asking employees to turn off air conditioning, computer monitors and the lights to conserve energy, as Chinese utilities accelerate efforts to secure LNG supplies in preparation for winter. In Jilin province, which suffered blackouts over the weekend, they are seeking more coal import quotas as they look to boost inbound shipment.

Source: Bloomberg

3. The road to post-Covid…

As we sprint towards reopening, we had news NSW will trial allowing international students back into Aus (via special quarantine accommodation). Students must be fully vaccinated with a TGA-approved vaccine, which only includes Pfizer, Moderna, AZ and Johnson & Johnson. This will narrow the field of eligible students allowed to enter Aus, but may help with stretched labour conditions heading into the Summer hospitality season. You might even be able to find a babysitter for when the pubs open!


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

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