SINCE economists are looking to the housing market to provide the fertiliser for the green shoots of recovery it is worth weighing the pros and cons of such a rebound.
SINCE economists are looking to the housing market to provide the fertiliser for the green shoots of recovery it is worth weighing the pros and cons of such a rebound.
The latest figures for building approvals have provided much food for thought, with the apartment sector bearing the brunt of what Citi says is a "stunning reversal", a 44 per cent drop which wiped out all the growth recorded in February and March.
The economic laggard, NSW, was again to blame, proving that life for listed residential builders like Stockland and Mirvac is unlikely to get any easier soon, especially when building units of four storeys or higher.
Still, approvals for houses have held up reasonably well and the sector should be helped by the levelling out or even fall in prices, and the impact of the various stimulus packages, tax breaks and the low interest rates.
Questions, though, remain about how long prices will remain subdued and when the Reserve Bank may reverse its policy of easing interest rates.
Then there's the inevitable caution that many prospective homebuyers will have about taking on more debt when rising unemployment is still a problem.
Those are all issues investors will have to consider when they look at the likes of housing market suppliers such as Boral, CSR, Wattyl and Crane Group and retailers like Harvey Norman, where homebuyers go to furnish their new pads.
Who said stock picking was easy?
Better than hell
So far, so good for Patrick Snowball, the newly appointed chief executive of Suncorp-Metway. His elevation to the hardest job in Australian financial services has been warmly welcomed by analysts.
Although he does not start work until September 1, the former head of Aviva UK operations threw himself into a round of meetings with investors in Sydney immediately after news of his arrival was released. Their reaction was largely positive seeing they wanted a new chief executive with a background in insurance rather than banking - Suncorp's bank is considered a major problem and a candidate for disposal.
But joining the group and replacing his predecessor, the hapless John Mulcahy, is the easy bit.
Market watchers are already compiling a "to do" list for the new boss - though most, if not all, of the items will mirror his own.
According to analysts at the Royal Bank of Scotland, the first task is to offload the bank, which is likely to be harder than first thought, particularly given the competition regulator's hardening stance against further consolidation in the industry since the takeovers of St George and BankWest. Still, that shouldn't stop him trying.
In the meantime, the CEO's appointment and the removal of uncertainty should add some upside to the stock, they say.
According to UBS, Mr Snowball's other immediate challenge is finding a replacement for the well-regarded Chris Skilton, Suncorp's finance director who has been acting chief executive. He is leaving the group once the new boss takes over.
And then there's a successor for its chief risk officer. Andrew Harmer is due to return to Ernst & Young - he was on secondment and only filling in for a few months.
For the team at Citigroup, Mr Snowball's appointment is a positive but they would like to get a better measure of the man, who they say lacks experience in the Australian market even if he knows British insurers back to front.
Given the question marks over the bank, its bad debt position and the need to generate better earnings from the dominant insurance business, Citi says the short-term risks at Suncorp remain high but its longer-term prospects are better.
Extra added extra time
In yet another chapter in the survival saga of Network Ten's key shareholder, CanWest, the Canadian media company has managed to wring out a further reprieve from its creditors.
Its chief executive, Leonard Asper, now has until the end of the month to reach a binding agreement to recapitalise the company, which is crumbling under its debt load.
The definitive deal has to be signed by July 31.
CanWest sold two small TV stations in Canada this week, which were set to close if a buyer was not found. But the sale will not make much difference to its fate. According to Canadian media reports, the two stations went for less than $C5000 to an upstart broadcaster.
