Friday, January 25, 2019

AMP shares plunge as much as wealth manager warns of full year profit wipeout, slashes dividend


AMP investors have been warned to brace for a 97 per cent slump in profit and massive dividend cut as the costs of the scandals exposed in the banking royal commission continue to mount. 

AMP further downgraded its already weak guidance, reporting that its net profit for the 2018 calendar year would be "approximately $30 million" down from $841 million reaped the previous year. 

Shaw & Partners banking analyst Brett Le Mesurier says investors are now bracing for the Royal Commission's final report due on February 1.

Australian dollar tipped to dive to 60 US cents on China economy, housing correction fears

The Australian dollar could dive to 60 US cents if China's economic slowdown deepens and local real estate prices continue to correct. 

The London-based Capital Economics believes a hit to Australia's economic growth will force the Reserve Bank to cut interest rates. 

ABC's Peter Ryan says tighter credit conditions from the banking Royal Commission will also risk weighing on the economy.


Source: Capital Economics

Thursday, January 24, 2019

Unemployment dips to 5pc despite a cooling economy and housing correction

Australia's jobs market has defied cooling economic conditions with the jobless rate edging down to 5 percent in December. 

A better than expected 21,600 new jobs were created, although the bulk of these were part-time positions with 3,000 full-time jobs being shed over the month. 

But AMP Capital chief economist Shane Oliver tells ABC's Peter Ryan the deepening housing correction could harm the broader economy.

Wednesday, January 23, 2019

Global tremors put Australia's recession free record at risk, warns Saxo Bank strategist Eleanor Creagh

Investors are becoming increasingly nervous that Australia's 27 years without a recession is being tested by global economic tremors. 

The risk of a sharp slowdown in China and simmering trade tensions between the US and China leave Australia exposed - on top of a potentially damaging correction in real estate prices. 

Saxo Bank market strategist Eleanor Creagh speaks with ABC's Peter Ryan.