Friday, November 2, 2018

Tepid retails sales confirm increasingly cautious consumer

Australian households are becoming increasing more cautious according the the latest retail sales data released this morning. 

Sales grew just 0.2 percent seasonally adjusted in September with lower spending on clothing, footwear accessories. 

ABC's Peter Ryan says the soft data could be early evidence that falling real estate values in Sydney, Melbourne and Brisbane are tempering attitudes to perceived household wealth.

Thursday, November 1, 2018

NAB boss Andrew Thorburn preparing for Royal Commission grilling over banker misconduct

National Australia Bank chief executive Andrew Thorburn has revealed a five percent jump in full year profit to $5.5 billion dollars. 

The "credible" result comes as Mr Thorburn prepares to face the banking Royal Commission after evidence of alleged criminal breaches in relation to banker misconduct. 

Andrew Thorburn speaks with the ABC's Peter Ryan.

Wednesday, October 31, 2018

ANZ in "messy" $6.4b profit under shadow of Royal Commission, CBA sells wealth arm to Japanese banking giant

ANZ Bank has delivered what chief executive Shayne Elliott calls a "messy" $6.4 billion full year profit under the shadow of the financial services Royal Commission. 

Also this morning, the Commonwealth Bank announced it would sell Colonial First State Global Asset Management to Japanese banking giant Mitsubishi UFJ Trust and Banking Corporation for $4.13 billion. 

ABC's Peter Ryan says the deal is subject to regulatory approval.

Flex car finance ban hits tomorrow - but banks, dealers drag their feet on dodgy practice laid bare at banking Royal Commission

Unethical "flex" finance where dealer and bank interests take priority over consumers will be banned from tomorrow after action by the corporate regulator ASIC.

Consumer advocate Gerard Brody slammed banks and car dealers for not implementing the ban immediately by waiting until November 1.

Listen to my coverage from this morning's AM program

Tuesday, October 30, 2018

Housing correction a reality but no crash likely, says CBA chief economist Michael Blythe

Commonwealth Bank chief economist Michael Blythe has pushed back against warnings that Australia is facing a crash in housing prices. 

However, Michael Blythe says a correction is underway and says that some highly-leveraged households might be exposed by rising interest rates, even though many borrowers are more than 30 payments ahead. 

The Commonwealth Bank is Australia's biggest home lender and like other banks will be impacted by tighter lending standards from the Australian Prudential Regulation Authority.

Listen to my interview with Michael Blythe here

Monday, October 29, 2018

Trust in banks hits new low as CEOs prepare to face Royal Commission next month

Trust in Australia's major banks has hit a new low, according to an index released by the advisory firm Deloitte. 

Regulatory partner Willem Punt tells ABC's Peter Ryan it will be challenging for banks to rebuild trust given the fallout from the Royal Commission.

Listen here

Global markets brace for more volatility as US rate rises rattle investors

Global investors are bracing for deeper falls as the US Federal Reserves continues with its strategy of gradually raising interest rates. 

Paul Gruenwald, chief economist at S&P Global Ratings, says US trade tensions with China will also continue as Donald Trump challenges the way China does business.

Listen to the interview here