AFR consumer trends for 2012. QBE chairman in the eye of the insurance storm. Govt believed to have votes for health insurance changes. Hedge guru warns on housing shortage. Ex-Telstra director to oversee carbon tax. Chloe Munro was named on Thursday as the first chair and chief executive of the Clean Energy Regulator which will be up and running by early April.
Photo: Tom McKendrick The federal government has appointed former Telstra director Chloe Munro to head the independent authority that will run Labor’s controversial carbon tax and subsequent emissions trading scheme. Suncorp cuts 65 more Australian jobs. Absenteeism reflects sick organisation. Fair Work makes agreement harder: BHP. Markets Today. Inflation a bogey for bonds down the track. Philip Baker Put off by the wild ride in global sharemarkets, investors around the world have flocked to bonds and term deposits.
In the US, for example, 2009 and 2010 witnessed the two largest years of bond investing on record. Investors poured hundreds of billions of dollars into the presumed safe haven of bonds. The flow helped to drive bond prices to record highs. China inflation highest since Oct. Reserve Bank Of Australia Leaves Interest Rates Unchanged. Rate cuts hinge on Europe. RBA holds rates at 4.25pc. Holding the official cash rate at 4.25 per cent for a third month will help support the currency, which has been trading above $US1.07.
Photo: Louie Douvis Adrian Rollins and George Liondis The Reserve Bank of Australia has flagged it may not cut interest rates further unless the economy slumps, saying an optimistic global outlook was a reason to keep rates on hold. The RBA’s decision yesterday lifted the Australian dollar to a six-month high and compounded woes for manufacturers and retailers. But by not cutting rates, the central bank has left open the possibility that major lenders such as ANZ Banking Group will actually raise mortgage and business charges as they seek to restore profit margins hit by higher funding costs linked to offshore financial uncertainty.
Bendigo joins move to set its own rates. Big Four under pressure as BoQ keeps rates steady. Rates, jobs and speedboats: the economy explained - The Drum Opinion - The announcement of an interest rate decision by the RBA always brings with it a moment of wonder. And how are things in the economy? Well, since you asked... (Australian Broadcasting. Find More Stories Rates, jobs and speedboats: the economy explained. Big four should remember who backed them in GFC. Big four should remember who backed them in GFC. Our banks: too big to fail, too few to be competitive - The Drum Opinion - Australia can build both a more stable and competitive financial system. All it requires is real leadership. Find More Stories Our banks: too big to fail, too few to be competitive Mark Bouris and Christopher Joye Prior to the global financial crisis, Australia had a diverse and highly competitive financial system.
The four major banks went head-to-head with the likes of St. Stop bank bashing, ANZ tells politicians. John Kehoe and George Liondis ANZ Banking Group chairman John Morschel has called on politicians to stop spreading misinformation about the sector before the bank’s decision tomorrow on whether to lift interest rates independent of the Reserve Bank of Australia.
“I wish the politicians would get their facts straight before they start making public statements,” he told The Australian Financial Review. “There was no capital provided to any Australian bank by the government and the only thing they did was guarantee wholesale funding, for which they charged a fee and earned a hell of a lot of money from.”
The funding pressure on banks was underlined yesterday when National Australia Bank did a $1.5 billion bond issue and paid the highest price on record to sell five-year debt in the local public market. Interim results calendar. Perpetual CEO Ryan in shock departure. Duncan Hughes ‘We need to work harder,’ says incoming Perpetual chief executive Geoff Lloyd.
Photo: Jim Rice Perpetual chairman Peter Scott has warned new chief executive Geoff Lloyd that he is under pressure to deliver quick results for shareholders following former CEO Chris Ryan’s shock exit yesterday, which was blamed on a disagreement with the board over strategy. Perpetual CEO Resigns After Board Disagreement - Deal Journal Australia. By Rebecca Thurlow Bloomberg News One weekend board stoush has rolled into the week.
Australian fund manager Perpetual said Monday that chief executive Chris Ryan agreed to step down following a disagreement with the board. Perpetual gets a grip on reality. ASX Perpetual press release. Changes Afoot At Macquarie - Deal Journal Australia. By Gillian Tan and Isabella Steger Reuters Macquarie CEO Nicholas Moore is making changes Macquarie Group has appointed Sydney-based Ben Brazil as co-head of its Corporate and Asset Finance Group, or CAF, the company’s lending and leasing businesses.
The group also announced the appointment of Alex Harvey as chief executive officer of Macquarie Asia. Mr. Macquarie Group Chief Executive Nicholas Moore said Mr. Mr. Mr. NAB profit $1.4bn but margins fall. Macquarie -25% profit Securities plunge. Europe crisis hits Macquarie. John Kehoe ‘We probably wouldn’t have done that’: Nicholas Moore, Macquarie Group chief executive.
Photo: Louise Kennerley Macquarie Group chief executive Nicholas Moore has admitted that a series of European acquisitions in recent years was a mistake after the investment bank slashed its expected profit guidance by 25 per cent and axed hundreds of jobs. Speaking at the bank’s operational briefing in Sydney yesterday, Mr Moore conceded the bank had misread the extent and longevity of the instability brought about by the 2008 financial meltdown and the European debt crisis.
Not happy, Bankwest, say customers. Pub with no cheer ...
Sean Butler in front of the National Hotel in Fremantle, which is on the market after Bankwest called in receivers in June 2011. Photo: Megan Lewis Natalie Gerritsen Two years ago, builder and hotelier Sean Butler stood at the top of his Fremantle hotel and looked out at the view. Half-year earnings slump expected. Earnings disappoints.
Telstra shares slip as profit falls short. Telstra said the results for the first half of the year were in line with its expectations despite the difficult macroeconomic backdrop.
Photo: Peter Braig John McDuling All capital management options on the table . . . Retail sales in worst showing since 1984. Tough year ahead for retail sector Three key factors contributed to the weak retail sales for 2011, Chris Zappone reports. 6, 2012 Update Retail sales in Australia posted their weakest annual growth in 27 years in 2011, as consumers cut spending in favour of saving and paying down debt. Annual retail sales grew 2.4 per cent in 2011, easing from a 2.5 per cent rise in 2010. Spotless bows to shareholder pressure. Dire prediction hits home - CHANTICLEER. Insurance industry moves on flood crisis. Insurance Council (icaus) Disastrous year sends insurance premiums higher. Consumers have upper hand when shopping for car insurance. Well-Off Benefit From Private Health Rebate. World awaits mega-merger.
Low equity valuations a buy signal. Text book rental start-up Zookal - Chris Zaharia. Businesses rethinking mobile plan. Wesfarmers Insurance defends premium hikes. The head of Wesfarmers' insurance arm has defended the local industry in the face of premium rises of as much as 15 per cent for home insurance. Wesfarmers Insurance managing director Robert Scott said Australia's insurance industry was in a strong condition given a year of a record numbers of natural disasters that forced up premiums and squeezed margins.
Europe in Future Fund’s Future? - Deal Journal Australia. If you’re a banker reading this, then booking a flight to Europe could be a good idea. Bloomberg News David Murray, chairman of Australia’s Future Fund, attends a news conference in Beijing, China. Assets in Europe are on the list of investments liked by advisers to Australia’s Future Fund, the country’s quasi-sovereign wealth fund with 73.1 billion Australian dollars (US$78.5 billion) under management, according to its chairman David Murray. “Quite clearly they see significant changes in Europe that will throw up good assets for the private sector and institutional investors,” Murray told Deal Journal Australia in an interview this week.
Investors ignore insurance hike forecast. Wealth managers use sweetheart deals to attract and retain advisers.