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In early September, Standard
& Poor's announced that it was reviewing
the AA credit ratings of Australia's major
banks. It expressed concerns about the banks'
reliance on wholesale funding, Australia's
economic imbalances, low deposit ratios and
the high level of household debt. Senior bankers
immediately downplayed these threats, declaring
that S&P's approach was flawed and its
review unwarranted. But are the banks as safe
as they claim?
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Most Australians, and
nearly every Victorian, can tell you a childhood
story that relates to Myer. It could be about
visiting the window displays at Christmas,
or being dragged there by your mum to buy
some good clothes, or purchasing something
memorable that you still use today. Especially
in Melbourne, the Myer store in Bourke St
was almost as important a reference point
as Flinders St station or the GPO. But how
much is it worth now?
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On 10 July, the Federal
Government announced its Clear Energy Future
package. The 158-page plan details a range
of measures to combat climate change including
the introduction of a $23/tonne carbon tax.
But what most people want to know is what
compensation they will get, particularly in
the form of tax cuts. The proposed new tax
schedules are outlined on page 42 of the
report which is summarised here.
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Our latest quarterly
poll shows that investors are losing faith
in actively managed global share funds. Faced
with subdued or declining inflows, many funds
have either closed their doors, merged or
been absorbed into other products. Over the
past year, nearly one-fifth of the global
funds in our survey sample have either merged
or disappeared off the scene.
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Despite the gloom, our
latest survey of company results reveals some
encouraging trends. Net profits are up for
the first time since 2007, profit margins
are at a record high and more than 80% of
companies have maintained or lifted their
final dividend.
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