Friday, July 27, 2018

AMP releases royal commission damage control plan; warns investors to lower profit expectations

AMP has announced lower profit expectations to the market, and released its royal commission damage control plan. 

The wealth manager will put aside $290 million for its first half profit to compensate customers charged for services they did not receive. 

ABC's Peter Ryan says AMP faces more scrutiny from the Royal Commission and that senior counsel assisting Rowena Orr QC has previously claimed the company may have engaged in criminal activity.

Here's my report from The World Today

Thursday, July 26, 2018

Fairfax brand to die in $4 billion Nine Entertainment takeover

Fairfax and Nine have announced a $4 billion merger that will create an integrated media giant across television, online video streaming, print, digital and real estate advertising — and erase the Fairfax name. 

Nine will be the dominant partner, with its current shareholders holding 51.1 per cent of the merged company's shares, and the current Nine chief executive and chairman — Hugh Marks and Peter Costello, respectively — leading the combined firm, which will be called Nine. 

ABC's Peter Ryan says the historic deal changes Australia's media landscape.

Here's my coverage from The World Today

Wednesday, July 25, 2018

Inflation remains subdued - though petrol prices and health costs nudge inflation higher

Surging oil prices and ongoing cost increases in medical and hospital services has seen the annual inflation rate edge up to 2.1 per cent over the year. 

But June quarter inflation remains soft at the bottom of the Reserve Bank's 2 to 3 percent target band. 

ABC's Peter Ryan says the RBA's cash rate could remain in hold at 1.5 percent until 2020.

Tuesday, July 24, 2018

NAB boss Andrew Thorburn concedes some remote branches will close with technological change; ready to face Royal Commission if called

National Australia Bank chief executive Andrew Thorburn has conceded that some branches in rural and remote Australia might close as part of technological change. 

As he deals with the fallout from the financial services royal commission, Mr Thorburn has committed to ending default interest rate hikes to farmers who miss repayments and other assistance with agricultural loans. 

Mr Thorburn has been visiting Wagga Wagga in southern NSW and he spoke with the ABC's Peter Ryan on The World Today

Organised crime, cyber-hackers now top threat to Australian businesses warns PWC

Australian companies are being ripped off more than ever by their own customers, suppliers and cyber criminals who are sometimes backed by organised crime. 

The advisory firm PWC says customer fraud is now the number one economic crime in Australia. 

PWC's global economic crime survey out this morning says organised crime syndicates are becoming more sophisticated and are using new technologies to fake documents and IDs.

I spoke with PWC's cyber markets leader Steve Ingram on the ABC's AM program.

Monday, July 23, 2018

Construction set for its biggest fall since the global financial crisis warns BIS Oxford Economics


Australia's building commencements fuelled by investor apartment construction looks like heading from boom to bust, according to the economic forecaster BIS Oxford Economics.

In a reality check for investors who bought at the top of the apartment boom, BIS is predicting the biggest correction since the global financial crisis hit in 2008 with housing starts set to fall by almost 23 percent by 2020.

I spoke with BIS Oxford Economics associate director Adrian Hart.


Nufarm shares dive as drought saps demand for agricultural products; ACCC fines One Big Switch over misleading conduct

Shares in the agricultural products company Nufarm have fallen as much as ten percent after telling investors the drought on Australia's east coast would hurt profits. 

Nurfarm told the Australian Stock Exchange said the market had reached a turning point and it was "now unlikely a viable crop season would occur in many parts of the country." 

In other news, ABC's Peter Ryan says the competition regulator has fined One Big Switch $25,200 for misleading claims over a campaign for consumers to switch to Click Energy.

Here's my report from The World Today