Author: roymorgansocial

Banks defiant on mortgage rates

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Original article by Joyce Moullakis, Lachlan Moffet Gray
The Australian – Page: 17 & 21 : 5-Nov-20

Australia’s four largest banks will keep their variable home loan interest rates unchanged, despite the Reserve Bank’s decision to reduce the cash rate to a record low of 0.1 per cent. However, the "big four" banks will all reduce their fixed home loan interest rates, with some falling below two per cent for the first time. The majority of mortgage loans across the Australian financial sector have variable rates, although more borrowers are opting for fixed-rate loans in the low-interest rate environment.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Retirees hit but ‘it’s for the good of all’

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Original article by Patrick Commins
The Australian – Page: 4 : 4-Nov-20

Reserve Bank governor Philip Lowe has conceded that retirees and savers will be hard hit by the decision to reduce the cash rate to a record low of 0.1 per cent. However, Lowe contends that they need to be mindful of the "collective good", arguing that lower rates will benefit the broader community by supporting spending and creating jobs. Rice Warner’s executive director Michael Rice notes that retirees who are only partly self-funded will be particularly hard hit by the decline in deposit rates, and many will become more reliant on the age pension.

CORPORATES
RESERVE BANK OF AUSTRALIA, RICE WARNER ACTUARIES PTY LTD

Unions push for better protections as 80% of employees say they want to keep working from home

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Original article by Paul Karp
The Guardian Australia – Page: Online : 4-Nov-20

The ACTU proposes to adopt a charter of rights about working from home. The charter covers issues such as a safe working environment and the right to be compensated for all hours worked from home. Meanwhile, the ACTU has released a survey of 10,000 workers which found that 81 per cent want to keep working from home if they have sufficient support from their employer. Some 47% of respondents said they are more productive at home, while 49 per cent reported experiencing a mental health issue due to working from home.

CORPORATES
ACTU

China to halt key Australian imports in sweeping retaliation

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Original article by
Bloomberg – Page: Online : 4-Nov-20

Sources have indicated that Chinese traders have been ordered to cease buying at least seven categories of Australian commodities, amid growing tensions between the two nations. Traders are said to have been verbally told to stop buying Australian coal, barley, copper ore and concentrate, sugar, timber, wine and lobster from 6 November. However, iron ore is not believed to be included in the list of barred commodities at present. Chinese media reports have also suggested that a ban on Australian wheat will also be imposed.

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ANZ-Roy Morgan Consumer Confidence increases for ninth straight week, up 0.2pts to 99.9 – up in Melbourne as 16 week lockdown ends

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Nov-20

ANZ-Roy Morgan Consumer Confidence rose 0.2pts to 99.9 on the weekend of October 31/ November 1. It is now 5.7pts above the 2020 weekly average of 94.2, but it is still 13.6pts lower than a year ago (113.5). Consumer Confidence has now increased for nine straight weeks and is up 9.7pts since ending August at 90.2, and is at its highest since March 14/15 (100.0). Now 22% (down 4ppts) of Australians say their families are ‘better off’ financially than this time last year, while 34% (up 2ppts) say their families are ‘worse off’ financially. In addition, 36% (up 1ppt) of Australians expect their family to be ‘better off’ financially this time next year, and 16% (unchanged) expect to be ‘worse off’ financially. Some 12% of Australians (up 3ppts) expect ‘good times’ for the Australian economy over the next 12 months (the highest figure for this indicator since March, while 30% (down 4ppts) expect ‘bad times’ (the lowest figure for this indicator since July 2019). Meanwhile, 35% (down 1ppt) of Australians say now is a ‘good time to buy’ major household items, while 32% (up 1ppt) say now is a ‘bad time to buy’.

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

RBA’s shot in zero-sum rates game

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Original article by Patrick Commins
The Australian – Page: 1 & 4 : 4-Nov-20

Reserve Bank of Australia governor Philip Lowe has flagged the use of "additional monetary policy options" if necessary, after reducing the cash rate to a record low and announcing a quantitative easing program. Lowe has indicated that the cash rate will remain at 0.1 per cent for 3-5 years, while the RBA’s three-year bond rate target has also been reduced to 0.1 per cent. Meanwhile, former RBA board member John Edwards has hailed the "courageous" and "historic" decision to pursue quantitative easing. The central bank will purchase about $5bn worth of federal and state government bonds each week over the next six months.

CORPORATES
RESERVE BANK OF AUSTRALIA

SA expected to soften borders with Victoria to allow quarantine

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Original article by Emily Cosenza
Herald Sun – Page: Online : 4-Nov-20

South Australian Premier Steven Marshall says the state is likely to scrap its hard border with Victoria within two weeks. However, Victorians will still be required to self-quarantine for 14 days after entering the state. Marshall says the travel restrictions will initially be relaxed for people living in border communities, who will no longer need to tested for COVID-19 every week if they want to travel to SA. Victoria has now recorded four consecutive days with no coronavirus cases, and there are just 38 active cases across the state. Meanwhile, the number of active cases among returned travellers in hotel quarantine in SA has increased to 13 after two more tested positive for COVID-19.

CORPORATES
SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Trump predicts solid win as Biden grows more confident

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Original article by Matthew Knott
The Age – Page: Online : 4-Nov-20

Democrats candidate Joe Biden has an average lead of 2.3 percentage points over US President Donald Trump in the key ‘battleground’ states. However, Trump believes that he has a "solid chance" of winning the presidential election, while he has ruled out "playing games" by declaring an early victory if the results are not clear on election night. Biden in turn has told his supporters that he senses that the Democrats are set for a "big win". More than 100 million Americans voted by mail or at an early voting site prior to election day; these votes are expected to favour the Democrats, but the Republican Party is tipped to perform better among people who vote on election day.

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UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, REPUBLICAN PARTY (UNITED STATES), DEMOCRATIC PARTY (UNITED STATES)

News from the Spirit World

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Nov-20

There are 4.7 million NEO (new economic order) consumers in Australia, characterised by very high discretionary spending coupled with a forward-thinking mindset. This influential group of consumers is driving the consumer-led fast lane of Spirits sales. However, the price of premium Spirits is not the main consideration for these consumers. A distinctive mindset is just as important as money in identifying NEOs and understanding what they love. NEOs look for a complete experience. In Spirits as in their other purchases, they seek a narrative that combines artisanal authenticity with innovation, a product that is premiumised, not commoditised. Data from Roy Morgan Single Source shows that Spirits brands which can deliver this rich experience reap the rewards. By contrast, marketing premiumised Spirits by generation is a wasted effort. Roy Morgan data shows premium gin Bombay Sapphire became highly successful by appealing to the NEO mindset: over the past year, just 26% of Bombay Sapphire drinkers were Millennials, while 84% were NEOs & Aspiring NEOs – of all ages. This story is repeated across other Spirits brands.

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ROY MORGAN LIMITED

Argyle closes but legend lives on

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Original article by Paul Garvey
The Australian – Page: 18 : 4-Nov-20

Production at Rio Tinto’s iconic Argyle diamond mine in Western Australia has formally ended after 37 years. More than 865 million carats of rough diamonds were produced at Argyle during its mine life, while it has accounted for about 95 per cent of global supply of pink diamonds. The mine also ended the De Beers diamond monopoly. It is expected to take about five years to close down the Argyle mine and rehabilitate the site.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DE BEERS CENTRAL SELLING ORGANISATION