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FinAdviser News FinAdviser is a news and information service from the Australian business and finance world

Dividend income is the payment made to a company's shareholders as a percentage of its profits. It is usually paid out i...
31/01/2023

Dividend income is the payment made to a company's shareholders as a percentage of its profits. It is usually paid out in cash, but it can also be in stock or other assets.

Dividend income refers to the payment made to shareholders of a company as a portion of its profits. It is typically paid out in cash but can also be in the form of stock or other assets.

01/01/2023
09/11/2022

When the conflict between Russia and Ukraine appeared to be winding down, Putin raised the stakes by threatening to use nuclear weapons. Since then, the West and the European Union have become uneasy, especially Europe, which faces the threat of a freeze as Russia tries to cut off natural gas suppli...

02/11/2022

Australia welcomes foreign investment. It has helped build Australia’s economy and will continue to enhance the well-being of Australians by supporting economic growth and innovation into the future. Foreign investment supplements domestic savings; without foreign investment, production, employmen...

25/10/2022

On 25Th Oct 2022, The Australian government announced its half-yearly budget. The budget aims to deliver targeted cost-of-living relief and invests in Australia’s future. The Government’s plan is focused on responding to these challenges and building a better future for all Australians. This Bud...

19/09/2022

At the age of 92, a man of strong determination and concrete willpower said goodbye to everyone and left many soaked in the grief of immense loss.   Jim Bain, a major figure in Australian stockbroking and pioneer of the screen trading revolution that led to the formation of the ASX, died in Sydney....

01/08/2022

In the last 11 years, the European Central Bank (ECB) has raised interest rates by 50 basis points for the first time. The US Federal Reserve had been increasing interest rates up to this point. Additionally, India’s interest rates were rising in tandem with those in the US. Let’s start by figur...

22/07/2022

In the past two weeks, stocks have rallied through scorching hot inflation data, the possibility of a 100-basis point hike by the Fed in July, a revenue slowdown in bank earnings, and almost a million subscriber losses by Netflix.

15/07/2022

Shares of a business that operates in a sector or market segment with financial performance that is often inversely connected with the status of the economy as a whole are referred to as counter-cyclical stocks. As a result, the stock’s price will typically move in the opposite direction of the ov...

13/07/2022

A short squeeze is an exceptional circumstance that causes the price of a stock or other tradable security to rise quickly.

12/07/2022

A stock is said to be cyclical if the price varies as a result of macroeconomic or systematic shifts in the overall state of the economy. Cyclical equities are well known for tracking an economy’s boom, peak, recession, and recovery phases. The majority of cyclical stocks belong to businesses that...

08/07/2022

Dead Cat Bounce Meaning to Investors A dead cat bounce is a term used in financial markets to describe a temporary recovery in the price of a security or stock that has been experiencing a downtrend. The term is derived from the idea that a dead cat will bounce if it falls from a high […]

07/07/2022

“There will be bear markets about twice every 10 years and recessions about twice every 10 or 12 years but nobody has been able to predict them reliably. So the best thing to do is to buy when shares are thoroughly depressed and that means when other people are selling.”

It all depends on the perspective and information on hand for whether an event is a “Black Swan” event or not – one pers...
04/07/2022

It all depends on the perspective and information on hand for whether an event is a “Black Swan” event or not – one person’s loss is most often another person’s gain.

15/06/2022

Retail Sales MoM in Australia is expected to be 0.20 per cent by the end of this quarter, according to Trading Economics global macro models and analysts' expectations. In the long-term, the Australia Retail Sales MoM is projected to trend around 0.40 per cent in 2023, according to our econometric m...

Aussie against the US Dollar is back at almost the same level as before the announcement  Inflation in Australia in thes...
07/06/2022

Aussie against the US Dollar is back at almost the same level as before the announcement


Inflation in Australia in these couple of years has increased significantly. Global factors, including COVID-related disruptions to supply chains and the war in Ukraine as well as domestic factors, with capacity constraints in some sectors and the tight labor market, contributed to the upward pressure on prices. Due to this, the Reserve Bank of Australia Board on 7th June 2022, that is today, decided to increase the cash rate target by 50 basis points to 85 basis points. The Board also increased the interest rate on Exchange Settlement balances by 50 basis points to 75 basis points. An increase in interest rates by the Board is a further step in the withdrawal of the extraordinary monetary support that was put in place to help the Australian economy during the pandemic. The resilience of the economy and the higher inflation means that this extraordinary support is no longer needed.

According to the Board, inflation is likely to be higher than a month ago due to higher prices for electricity and gas and recent increases in petrol prices but then decline back towards the 2-3 percent range next year. Once the global supply-side problems are resolved and commodity prices stabilize, inflation is expected to be moderate. Thus, the Board thought an increase in interest rates will assist with the return of inflation to target over time.

Philip Lowe, the Governor, further says the Australian economy is resilient, growing by 0.8 percent in the March quarter and 3.3 percent over the year. Household and business balance sheets are generally in decent shape, an upswing in business investment is underway and there is a large pipeline of construction work to be completed. Macroeconomic policy settings are supportive of growth and national income is being boosted by higher commodity prices. The terms of trade are at a record high. The labor market is also strong. Employment has grown significantly, and the unemployment rate is 3.9 percent, which is the lowest rate in almost 50 years. Job vacancies and job ads are at elevated levels and a further decline in unemployment and underemployment is expected.

The Governor further adds, that one source of uncertainty about the economic outlook is how household spending evolves, given the increasing pressure on Australian households' budgets from higher inflation. Interest rates are also increasing. Housing prices have declined in some markets over recent months but remain more than 25 percent higher than prior to the pandemic, supporting household wealth and spending. The household saving rate also remains higher than it was before the pandemic and many households have built up large financial buffers.

The Board will be having a close look at these various influences on consumption as it assesses the appropriate setting of monetary policy. The Board will also be paying attention to the global scenario as it still remains clouded by the war in Ukraine and its effect on the prices of energy and agricultural commodities. Lastly, Philip Lowe mentioned that the Board expects to take further steps in the process of normalizing monetary conditions in Australia over the months ahead and the Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

With the federal election on the doorstep, the topic of First Home Buyer is in the limelight once again. Irrespective of...
02/06/2022

With the federal election on the doorstep, the topic of First Home Buyer is in the limelight once again. Irrespective of the outcome of the election, there’s a lot at stake for the incumbent Government. Even before the election, there were plenty of incentives to help you move to your dream First Home.
https://youtu.be/8i0oKGwTGbg

With the federal election on the doorstep, the topic of First Home Buyer is in the limelight once again. Irrespective of the outcome of the election, there’s...

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