Author: roymorgansocial

Households deplete pandemic savings

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Original article by Michael Read
The Australian Financial Review – Page: 3 : 28-Aug-24

The Reserve Bank of Australia has estimated that the nation’s households had amassed excess savings of about $300bn during the COVID-19 pandemic. However, National Australia Bank believes that this figure was about $200bn. Meanwhile, research from Yarra Capital Management suggests that households had most likely exhausted these pandemic-era savings by March 2024. Economists are now speculating as to whether consumers will opt to spend or save the additional income from the stage-three tax cuts that took effect on 1 July. Too much spending could force the RBA to leave the cash rate on hold for longer than expected.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, YARRA CAPITAL MANAGEMENT

ANZ-Roy Morgan Inflation Expectations drop to 4.8% in late August – down from 5.1% for the month of July

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Aug-24

The latest weekly ANZ-Roy Morgan Inflation Expectations are 4.8% for the week of August 19-25. This figure is below the average so far in 2024 of 5.0%, and down 0.3% points from the month of July. A look at monthly Inflation Expectations for July shows the measure at 5.1% for the month, up 0.2% points from a month earlier and the highest monthly figure since April (5.2%). Looking back over the first seven months of the year, weekly Inflation Expectations moved in a narrow band of 4.8% to 5.3%, and averaged 5.0%. The data for the Inflation Expectations series is drawn from the Roy Morgan Single Source, which has interviewed an average of around 5,200 Australians aged 14+ per month over the last decade, and includes interviews with 6,088 Australians aged 14+ in July 2024.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN BUREAU OF STATISTICS

Inflation watch: mind the gap

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Original article by Jack Quail
The Australian – Page: 4 : 28-Aug-24

Economists expect official data to be released on Wednesday will show that Australia’s headline inflation rate eased to 3.4 per cent in the year to July, compared with 3.8 per cent in June. HSBC’s chief economist Paul Bloxham says the Reserve Bank’s board is likely to overlook the headline inflation figure when it meets in September, given that its preferred measure of underlying inflation is expected to be higher. Treasurer Jim Chalmers says that although inflation remains "sticky and stubborn", Labor has made a lot of progress in reducing it since taking office in May 2022. Shadow treasurer Angus Taylor contends that Labor’s cost-of-living measures will temporarily reduce the headline inflation rate.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA

ANZ-Roy Morgan Consumer Confidence virtually unchanged at 82.6 in late August; highest six-week average since February

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Aug-24

ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 82.6 in the week to 25 August; however, the index has now spent a record 82 straight weeks below the mark of 85. Consumer Confidence is now 4.5 points above the same week a year ago (78.1), and 0.7 points above the 2024 weekly average of 81.9. Consumer Confidence is up in Victoria and Western Australia, but down in New South Wales, Queensland and South Australia. Now 21% of Australians (down 2ppts) say their families are ‘better off’ financially than this time last year, while 48% (up 1ppt) say their families are ‘worse off’. Looking forward, 32% (unchanged) of Australians expect their family to be ‘better off’ financially this time next year, while 33% (up 1ppt) expect to be ‘worse off’. Now 8% (unchanged) of Australians expect ‘good times’ for the Australian economy over the next 12 months, while 33% (also unchanged) expect ‘bad times’. Meanwhile, 23% (up 3ppts) of Australians say now is a ‘good time to buy’ major household items, while 49% (unchanged) say now is a ‘bad time to buy’.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

CFMEU vows to destroy the ALP

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Original article by Ewin Hannan, Mohammad Alfares
The Australian – Page: 1 & 5 : 28-Aug-24

More than 60,000 construction workers downed tools on Tuesday to join capital city protests against the federal government’s move to appoint administrators to the CFMEU’s construction divisions. Sacked CFMEU state leaders said they will campaign for the "absolute destruction" of Labor, urging union members to vote against the party at the next federal election and the state polls in Queensland and NSW. Former Queensland state secretary Michael Ravbar intends to pursue a High Court challenge against the administration, while former national secretary Christy Cain has urged Maritime Union of Australia members to join the next rally in solidarity with the CFMEU.

CORPORATES
CONSTRUCTION, FORESTRY AND MARITIME EMPLOYEES UNION, AUSTRALIAN LABOR PARTY, MARITIME UNION OF AUSTRALIA

Voluntary news media recycling scheme receives official accreditation

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Original article by Joe Kelly
The Australian – Page: 6 : 28-Aug-24

Australia’s news media industry has been operating a voluntary recycling scheme for printed newspapers for more than 30 years. The success of the scheme resulted in just 0.2 per cent of all printed news­papers going to landfill in 2023. It is administered by ThinkNewsBrands, whose CEO Vanessa Lyons has welcomed the federal government’s decision to official accredit the ‘product stewardship’ scheme. Media industry executives have emphasised the importance of sustainability for the sector.

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THINKNEWSBRANDS

The $5.1 billion problem costing one in four workers

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Original article by Millie Muroi
The Age – Page: Online : 28-Aug-24

The Super Members Council estimates that about 2.8 million workers were not paid their full superannuation entitlement in 2021-22, which equates to one in four workers. The underpayment totalled $5.1bn, which is around $1,800 per worker. The council says this could reduce affected employees’ retirement payouts by around $30,000; it also notes that unpaid super could force many people to delay their retirement. The council contends the federal government’s legislation requiring employers to align super contributions with their pay period rather than each quarter will help reduce underpayments; however, Labor has yet to legislate the change.

CORPORATES
SUPER MEMBERS COUNCIL

Matildas, Socceroos to remain on Network 10 for next five years

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Original article by Vince Rugari, Calum Jaspan
The Sydney Morning Herald – Page: Online : 28-Aug-24

Ten Network president Beverley McGarvey says soccer fans will still be able to enjoy many matches featuring the Socceroos and the Matildas on free-to-air TV under a new five-year broadcasting rights deal with Football Australia. The new rights deal includes the 2026 Women’s Asian Cup and the 2027 FIFA Women’s World Cup, as well as the Socceroos’ qualifiers for the 2026 Men’s World Cup; some matches will be shown exclusively on the Paramount+ streaming service. SBS holds the local broadcasting rights for the 2026 Men’s World Cup.

CORPORATES
TEN NETWORK HOLDINGS LIMITED, PARAMOUNT GLOBAL, PARAMOUNT+, FOOTBALL AUSTRALIA

China iron ore demand sliding: BHP

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Original article by Cameron England
The Australian – Page: 13 & 16 : 28-Aug-24

BHP has posted a 2023-24 statutory net profit of $US7.9bn, which is 39 per cent lower than previously. The result was marred by a $US2.7bn write down of its nickel assets in Western Australia and a $US3.8bn charge related to the Samarco tailings dam collapse in Brazil. BHP’s underlying profit was up two per cent to $US13.7bn, and revenue was three per cent higher at $US55.7bn. CEO Mike Henry says China’s steel production is expected to plateau in coming years, reducing demand for iron ore. Meanwhile, BHP has warned that labour costs will rise due to the federal government’s ‘same job, same pay’ industrial relations reforms, reducing Australia’s international competitiveness.

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BHP GROUP LIMITED – ASX BHP

The share of mortgage holders At Risk of mortgage stress fell in July after the Stage 3 tax cuts

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Aug-24

New research from Roy Morgan shows that 1,604,000 mortgage holders (29.8%) were ‘At Risk’ of ‘mortgage stress’ in the three months to July 2024. This represents a decrease of 0.5% points on the June figures after the introduction of the Stage 3 tax cuts in July increased household income for millions of Australians, including many mortgage holders. The level of mortgage holders ‘At Risk’ of mortgage stress is set to fall further over the next few months. However, a reduction in mortgage stress will not happen if the Reserve Bank board decides to raise interest rates at its next meeting in September. The number of Australians ‘At Risk’ of mortgage stress has increased by 797,000 since May 2022, when the RBA began a cycle of interest rate increases. Meanwhile, the number of mortgage holders considered to be ‘Extremely At Risk’ of mortgage stress is now numbered at 982,000 (18.9% of mortgage holders), which is significantly above the long-term average over the last 10 years of 14.5%. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

CORPORATES
ROY MORGAN LIMITED