Inflation Expectations up 0.2% points to 4.3% in August; highest for nearly three years since November 2018

Original article by Roy Morgan
Market Research Update – Page: Online : 22 September August 2021

In August 2021, Australians expected inflation of 4.3% annually over the next two years, up 0.2% points and the highest Inflation Expectations since November 2018. Inflation Expectations are now up 1.1% points since the pandemic low of 3.2% in August 2020. Inflation Expectations are still 0.4% points below their long-term average of 4.7% but are now 0.8% points higher than the 2020 monthly average of 3.5%. A look at Inflation Expectations by Federal Voting Intention shows big increases across the board from a year ago, and up significantly from two years. Inflation Expectations for L-NP supporters increased 1.1% points from a year ago to 4.2% in August and are now 0.7% points higher than two years ago in August 2019. In fact, the Inflation Expectations of L-NP supporters are now at their highest level since November 2014. The Inflation Expectations of Greens supporters have increased faster than any other over the last year and are up 1.5% points to 3.9% – but are still lower than supporters of all other parties. The Inflation Expectations for ALP supporters are at 4.2% in August, up 0.9% points from a year ago and now 0.5% points higher than two years ago in August 2019. On a State-based level Inflation Expectations are highest and well above the national average in both Tasmania at 4.7% and Queensland at 4.5%.

CORPORATES
ROY MORGAN LIMITED

Hoarded cash to drive recovery

Original article by Tom Dusevic
The Australian – Page: 1 & 6 : 22-Sep-21

The OECD now expects the Australian economy to grow by four per cent in 2021. The Paris-based organisation had previously forecast in May that the domestic economy would expand by 5.1 per cent in 2021 as it recovered from the COVID-19 pandemic. However, the Commonwealth Bank says economic activity will be boosted as households begin spending about $230bn worth of savings they have accumulated during the pandemic. The minutes of the Reserve Bank of Australia’s latest board meeting show that it is also upbeat about the long-term economic outlook, despite expectations that GDP will fall and unemployment will rise in the September quarter.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA

Tax cuts to soon disappear as budget relies on workers to recover from COVID-19

Original article by Shane Wright
The Age – Page: Online : 22-Sep-21

Analysis by the Parliamentary Budget Office shows that ‘bracket creep’ will erode the benefits of the federal government’s personal income tax cuts over the next decade. The PBO has forecast that people with annual income of $20,000 to $50,000 face an increase of 6.6 per cent in their average tax rate by 2031-32, while those earning between $50,000 and $75,000 will pay an extra three per cent. People earning $96,000 to $160,000 a year are the only ones who will be paying a lower average tax rate. The final stage of the income tax cuts package will take effect in mid-2024.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

ANZ-Roy Morgan Consumer Confidence virtually unchanged at 103.3 before Victorian re-opening plan outlined on Sunday

Original article by Roy Morgan
Market Research Update – Page: Online : 22-Sep-21

ANZ-Roy Morgan Consumer Confidence rose 0.2pts to 103.3 on September 18/19, before Victorian Premier Daniel Andrews outlined the State’s re-opening plan; the full impact on confidence won’t be felt until next weekend. Consumer Confidence remains well below the 2021 weekly average of 108.6, but it is now 9.8 points higher than the same week a year ago (93.5). Consumer Confidence this week was down slightly in both NSW and Victoria, although still in positive territory in both States. Consumer Confidence increased in both Queensland and South Australia, and was virtually unchanged – and higher than anywhere else – in Western Australia at well over 110. Now 26% (down 1ppt) of Australians say their families are ‘better off’ financially than this time last year, while 30% (up 2ppts) say their families are ‘worse off’ financially. In addition, 38% (up 1ppt) of Australians expect their family to be ‘better off’ financially this time next year, and only 13% (down 1ppt) expect to be ‘worse off’ financially. Some 14% (unchanged) of Australians expect ‘good times’ for the Australian economy over the next 12 months, while 24% (down 2ppts) expect ‘bad times’. Meanwhile, 34% (down 1ppt) of Australians say now is a ‘good time to buy’ major household items, while 32% (unchanged) say now is a ‘bad time to buy’.

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

US has ‘no closer ally than Australia’, says Biden after AUKUS pact

Original article by Patrick Wintour
The Guardian Australia – Page: Online : 22-Sep-21

Prime Minister Scott Morrison and US President Joe Biden have held their first official in-person meeting on the sidelines of the United Nations General Assembly in New York. Biden praised Australia ahead of the meeting, stating that the US has no "closer or more reliable ally". Biden had earlier addressed the general assembly, but his speech did not directly mention the new AUKUS security alliance between Australia, the UK and the US. Meanwhile, former prime minister Kevin Rudd has criticised Morrison’s handling of the cancelled submarines contract, particularly his failure to inform the French government that the deal would be dropped in favour of nuclear-powered subs under the new alliance.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED NATIONS. GENERAL ASSEMBLY

Rampaging thugs unleash destructive anarchy on Melbourne

Original article by John Ferguson, Angelica Snowden, Remy Varga
The Australian – Page: 1 & 4 : 22-Sep-21

Sixty-two people were arrested during violent protests in Melbourne on 21 September, in response to the Victorian government’s mandatory COVID-19 vaccination policy for construction workers and a two-week shutdown of the sector. An estimated 2,000 people participated in the protest, including construction workers, tradespeople and unionists, while there have been claims that the demonstration had been infiltrated by far-right activists and anti-vaxxers. Further protests are expected in coming days. Meanwhile, the state government has revised downward the number of COVID-19 cases linked to the construction sector since early August from 403 to just 337. This includes 239 cases that are linked to construction sites in metropolitan Melbourne.

CORPORATES

57% of Australians approve of the Federal Government’s agreement to purchase nuclear submarines from the USA

Original article by Roy Morgan
Market Research Update – Page: Online : 17-Sep-21

A special Roy Morgan Snap SMS survey shows that 57% of Australians approve of the Federal Government’s agreement to buy nuclear-powered submarines from the US, while 43% disapprove. Some 89% of L-NP supporters approve of the agreement, compared to 47% of ALP supporters and only 14% of Greens supporters. Meanwhile, 68% of men and 46% of women approve of the agreement. There is also a clear ‘age gap’ on views of the agreement, with strong approval among people aged 50-64 (60%) and those aged 65+ (72%); in contrast, 53% of people aged 18-24 and 51% of those aged 25-34 disapprove of the agreement. This Roy Morgan Snap SMS survey was conducted with an Australia-wide cross-section of 1,714 Australians aged 18+ on 16 September.

CORPORATES
ROY MORGAN LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Two NSW regions return to lockdown

Original article by Mary Ward, Daniella White
The Sydney Morning Herald – Page: Online : 17-Sep-21

New South Wales has recorded 1,351 new locally-acquired COVID-19 cases in the last 24 hours, while the state’s death toll from the current outbreak has risen by 12 for a second consecutive day. The latest fatalities ranged in age from their 40s to their 90s, and Health Minister Brad Hazzard has emphasised that 10 of these people had not been vaccinated. Meanwhile, the regional local government areas of Albury and Lismore will be placed in lockdown for at least seven days after reporting new COVID-19 cases; however, 12 regional LGAs have emerged from lockdown after case numbers stabilised.

CORPORATES
NEW SOUTH WALES. MINISTRY OF HEALTH

Australia’s nuclear sea zone

Original article by Ben Packham
The Australian – Page: 1 & 3 : 17-Sep-21

Australia’s new fleet of up to eight nuclear-powered submarines will cost significantly more than the cancelled deal to build 12 French-designed conventional subs. The first of the nuclear vessels is also unlikely to enter service until the late 2030s; the first Attack-class sub had been slated to do so in 2034. However, nuclear subs can be deployed for many months at a time without needing to surface, while conventional subs must do so regularly in order to recharge their batteries. The federal government has already invested some $2.5bn in the Attack-class contract with Naval Group. The government will also extend the operational life of the existing Collins-class submarines until the new fleet is delivered.

CORPORATES
NAVAL GROUP

France says Australia’s $90b submarine deal cancellation is a stab in the back

Original article by Jack Hawke
abc.net.au – Page: Online : 17-Sep-21

Prime Minister Scott Morrison has defended the federal government’s decision to cancel the submarine contract with France-based Naval Group. He has argued that decisions must be made in the best interests of national security, and stressed that France is still an important partner in the Pacific region. However, France’s Foreign Minister Jean-Yves Le Drian has criticised the decision to ditch the contract in favour of nuclear-powered submarines, arguing that the relationship of trust between the two nations has been broken.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NAVAL GROUP