Author: roymorgansocial

ANZ-Roy Morgan Consumer Confidence up 1.8pts to 79.8 and has now spent a record nine straight weeks below 80

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Original article by Roy Morgan
Market Research Update – Page: Online : 3-May-23

ANZ-Roy Morgan Consumer Confidence rose 1.8pts to 79.8 in the week to April 30. The index has now spent nine straight weeks below the mark of 80 – the longest stretch below 80 since the index began being conducted on a weekly rather than monthly basis in October 2008. Consumer Confidence is now 10.9pts below the same week a year ago (90.7), and 0.9pts below the 2023 weekly average of 80.7. Consumer Confidence was mixed around the States, with increases in Queensland and WA, but down in NSW, Victoria and South Australia. Now 20% of Australians (up 1ppt) say their families are ‘better off’ financially than this time last year, while 50% (unchanged) say their families are ‘worse off’ financially. Some 31% (up 1ppt) of Australians now expect their family to be ‘better off’ financially this time next year, while 34% (down 1ppt) expect to be ‘worse off’ financially. Only 6% (down 1ppt) of Australians now expect ‘good times’ for the Australian economy over the next 12 months, while 35% (down 3ppts) expect ‘bad times’. Meanwhile, 20% (unchanged) of Australians say now is a ‘good time to buy’ major household items, while 52% (up 1ppt) say now is a ‘bad time to buy’.

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

Jobs galore, but more on JobSeeker

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Original article by Geoff Chambers, Sarah Ison
The Australian – Page: 1 & 5 : 3-May-23

Data from the Department of Social Services shows that 921,000 people were receiving the JobSeeker and youth allowance payments at the end of March. The number of people receiving these payments has fallen by just 59,000 since Labor took office in May 2022, despite the unemployment rate having fallen to its lowest level in nearly five decades. Opposition leader Peter Dutton has urged the federal government to strengthen the ‘work for the dole’ program, which Treasurer Jim Chalmers has rejected. He says the 9 May budget will include measures aimed at supporting communities that are facing "entrenched, long-term unemployment".

CORPORATES
AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Coalition’s $50 JobSeeker rise more generous than Labor’s proposal, Pocock says

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Original article by Amy Remeikis, Paul Karp
The Guardian Australia – Page: Online : 3-May-23

The federal government is under scrutiny over reports that an increase in the JobSeeker payment in the 9 May budget will be restricted to people aged 55+. Independent senator David Pocock has called for an across-the-board increase in unemployment benefits and the youth allowance, saying it appears that younger people are being "left behind". Pocock adds that Labor risks being unfavourably compared to the former Coalition government, which increased JobSeeker and other support payments by $50 a fortnight in April 2021. Liberal MP Bridget Archer and teal MPs have also called for an increase in JobSeeker for all recipients.

CORPORATES
AUSTRALIAN LABOR PARTY

Budget warning after RBA shock

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Original article by Michael Read, Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 3-May-23

Treasurer Jim Chalmers says the Reserve Bank of Australia’s decision to increase the cash rate to 3.85 per cent on Tuesday underlines the fact that inflation remains the primary challenge for the domestic economy. Chalmers adds that the latest rate increase highlights the need to ensure that the budget on 9 May does not add to Australia’s inflation outbreak. Amid calls for an increase in welfare payments, Chalmers has stresssed that the budget will include "responsible cost-of-living relief" that does not add to inflation. Meanwhile, RBA governor Philip Lowe has conceded that further interest rate rises may be needed in coming months in order to reduce inflation to the target range of 2-3 per cent; however, he says the RBA does not need to get inflation back to the target straight away, while it also cannot take too long to do so.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Next Qantas CEO stares down $12.3b fleet revamp

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Original article by Lucas Baird
The Australian Financial Review – Page: 1 & 18 : 3-May-23

The pressing need to upgrade an ageing fleet will be a key challenge for Qantas veteran Vanessa Hudson when she succeeds CEO Alan Joyce in November. However, she is confident that Qantas will be able to manage the capital requirements of a fleet upgrade while continuing to reward shareholders. UBS estimates that Qants will need to spend $12.3bn on new airplanes between the 2024 and 2028 fiscal years, given that the average age of its fleet increased from 7.7 years in 2014 to 13.6 in 2022. Qantas chairman Richard Goyder has praised Hudson, noting that she has been in her current role of CFO during one of the most challenging periods in the airline’s history.

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QANTAS AIRWAYS LIMITED – ASX QAN

Builders hit a high for insolvencies

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Original article by Michael Bleby
The Australian Financial Review – Page: 28 : 3-May-23

Data from the Australian Securities & Investments Commission shows that an additional 71 businesses in the construction sector were declared insolvent in April. There have now been 1,672 construction industry insolvencies so far in the current financial year; this is the highest level since 2014, when 1,802 companies collapsed during the equivalent period. The Association of Professional Builders’ co-founder Russ Stephens says the construction sector has been too dependent on cash flow, with many firms facing financial problems once cash flows started to decline.

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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ASSOCIATION OF PROFESSIONAL BUILDERS

Seven downgrades its TV ad market forecast

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 15 : 3-May-23

Seven West Media CEO James Warburton estimates that the TV advertising market fell by 11 per cent during the March quarter, and he expects a similar decline in the June quarter. Seven West had forecast in February that the advertising sales downturn in the March quarter would be in the "mid to high single-digits". However, Warburton notes that the TV ad market often rebounds quickly after a downturn. Warburton has also advised that Seven West now expects its operating costs for 2022-23 to be within the range of $1.2bn to $1.21bn, compared with previous guidance of $1.22bn to $1.23bn.

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SEVEN WEST MEDIA LIMITED – ASX SWM

Super funds post 1.1pc return amid volatility

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Original article by Paulina Duran
The Australian – Page: 15 : 21-Apr-23

Data from Chant West shows that the median growth superannuation fund gained 1.1 per cent in March, and 6.9 per cent in the first nine months of 2022-23. The S&P/ASX 200 shed 0.2 per cent in March, but this was offset by strong returns from international shares, as well as Australian and international bonds. Mano Mohankumar of Chant West notes that the median growth fund has gained 29 per cent since the financial market meltdown in March 2020, at the onset of the global pandemic.

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CHANT WEST FINANCIAL SERVICES PTY LTD

Scandal-plagued Perth Mint could be privatised

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Original article by Rebecca Le May
The West Australian – Page: Online : 21-Apr-23

Western Australia’s Mines Minister Bill Johnston has indicated that "all options are on the table" for the Perth Mint in the wake of concerns that it has breached anti-money laundering and counter-terrorism financing laws. The government has commissioned an independent review of the state-owned Gold Corporation, which operates the Perth Mint, and it has not ruled out privatisation. However, shadow mines minister Mia Davies notes that Labor and Premier Mark McGowan have regularly stated that privatisation is not the answer.

CORPORATES
PERTH MINT, GOLD CORPORATION PTY LTD, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY

RBA to get the Lowe-down on jobs

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Original article by Patrick Commins
The Australian – Page: 1 & 4 : 21-Apr-23

The federal government will introduce legislation by the end of the year to amend the Reserve Bank Act after accepting all 51 recommendations of an independent review of the central bank. The RBA’s restructuring will result in responsibility for setting interest rates being transferred to a new monetary policy board, which will have six external members and continue to be chaired by the central bank’s governor. This board will meet eight times per year and it will hold a press conference after each meeting. The RBA will be required to give equal consideration to achieving full employment and controlling inflation in its future interest rate decisions. A separate governance board will assume responsibility for the day-to-day management of the RBA.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY