Friday, May 8, 2020

Jobless rates surges to 10pc, growth slides by 8pc - grim Reserve Bank downgrades forecasts. ME Bank backs down on loan redraw limit controversy

There's been a grim reality check on the economy from the Reserve Bank which see GDP growth going backwards by 8 percent in June as the pandemic locks down the nation. 

The official jobless rate will rise to 10pc in June with inflation turning negative consumers cut their spending.  

Also - ME Bank in backdown on loan redraw shock that damages bank's reputation.







Home office here to stay, hotdesking dead, social distancing new normal, KPMG forecasts

Advisory firm KPMG says remote working is here to stay, big corporates will reduce their city office spaces as workers stay home in the suburbs and high flying executives should say goodbye to international trips. 

KPMG Futures partner James Mabott says there could be an upside and tells ABC's Peter Ryan people are becoming kinder and reflecting on what really matters.


Thursday, May 7, 2020

Real estate to suffer ten percent pandemic hit, ANZ warns as incomes tighten and jobless rate spikes

Australian property prices are in for a potential hammering, as the pandemic hits pay packets, and jobless queues grow. 

Research by ANZ Bank sees price falls of 13 percent in Sydney, Melbourne and Hobart as borrowers confront falling incomes and rising unemployment. 

ANZ senior economist Felicty Emmett tells ABC's Peter Ryan the official ABS employment rate masks great uncertainty in the economy. 


Wednesday, May 6, 2020

ME Bank apologises for loan redraw debacle but CEO Jamie McPhee rejects liquidity concerns in pandemic

ME Bank has been forced to make a humbling apology for raiding the redraw facilities on some mortgage accounts that left customers shocked and bewildered. 

Chief executive Jamie McPhee concedes the bank "messed up" when it changed rules at the height of the pandemic on how borrowers access extra payments already pumped into an account. 

While the bank says there are no concerns about the it's stability during the crisis, complaints from anxious customers have sparked the attention of financial regulators. 

ABC's Peter Ryan with the story.

Tuesday, May 5, 2020

Qantas extends flight cancellations for two more months, workers stood down until late June

Qantas has underscored the economic damage from the COVID-19 pandemic by extending its flight cancellations for another two months.

The airline will be burning through $40 million a week by next month to maintain operations but says it can withstand the scenario of flights not getting back to normal until December next year. 

Chief executive Alan Joyce flags cheaper flights once the recovery takes hold.


APRA asks ME Bank for "please explain" for tapping mortgage redraw facilities during crisis; deputy chair Helen Rowell says $1.3b in super released in first week of emergency access

The Australian Prudential Regulation Authority says $1.3 billion has so far been released to anxious Australians who have raided their superannuation after the federal government changed hardship provisions during the pandemic. 

APRA deputy chair Helen Rowell says the superannuation sector is acting responsibly in the crisis, but warned the regulator will take action against super funds that are holding back on urgent payouts to struggling Australians. 

Mrs Rowell tells ABC's Peter Ryan that APRA has asked the industry super backed M-E Bank for a "please explain" after the boutique bank tapped the redraw facility in some mortgages at a time of crisis.



Monday, May 4, 2020

Westpac profit dives as COVID19 bites, CEO Peter King pledges not to tap mortgage redraw facilities

Banking giant Westpac has revealed an ugly half-year profit result, which is down 62 percent to $1.2 billion. 

The bank has deferred its dividend to shareholders, and flagged $2.2 billion in charges for bad loans, which includes the potential impact of COVID-19. 

Mr King tells ABC's Peter Ryan that Westpac won't be following action of ME Bank, which has upset borrowers by tapping redraw facilities in mortgages.





Consumers increasingly cautious as pandemic tightens household budgets

Consumer spending is on a slide as COVID-19 pandemic tightens household budgets according to real time data from advisers Illion and AlphaBeta. 

Applications for new finance is down and shoppers are choosing Aldi and Costco over Coles and Woolies. 

ABC's Peter Ryan says initial government spending is starting to fade.