Key highlights from the RBA’s April board meeting | AMP Capital

Key highlights from the RBA’s April board meeting Today the Reserve Bank of Australia (RBA) held its regular board meeting, albeit in extraordinary times for Australia and indeed the world. What we saw today from the RBA was no monetary policy changes, for the simple reason that less than three weeks ago, they made some radical changes in response to the COVID-19 pandemic. The RBA instead reaffirmed its recent actions – cutting the cash rate …

Dividend and buyback lockdown could be close for Aussie shares | AMP Capital

Dividend and buyback lockdown could be close for Aussie shares With the Australia economy partially ramping down to reduce the spread of the virus, the working capital squeeze begins for companies and households. Here, we explore what that could mean for dividends. Early signs It’s too early to say with precision, but dividends could be cut by at least a third in the next 12 months, which would lead to a larger cut to aggregate …

What the RBA’s response to COVID-19 means for the Australian economy | AMP Capital

What the RBA’s response to COVID-19 means for the Australian economy   The Reserve Bank of Australia (RBA) met today and agreed to a support package for the Australian economy, through the challenging period that is the COVID-19 outbreak. The central bank acknowledged this is, first and foremost, a health issue, and that the primary response is to manage the health of the population. As the RBA said, other arms of policy play an important …

Learnings for Aussie equities investors as a shutdown looms | AMP Capital

Learnings for Aussie equities investors as a shutdown looms The lockdown measures in Australia are at their beginnings, sending markets into a meltdown. For nervous holders of Aussie equities, it’s worth remembering there are two situations to brace portfolios for: the course this pandemic will run, and the inevitable recovery. Getting the facts right Though the number of cases in Australia of COVID-19 seem relatively low compared to global counterparts, this virus is spreading quickly …

Make Australia Save Again

Make Australia Save Again Are you one of the 20 per cent of Australians with less than $250 in their savings account?i Recent research from AMP Bank has found that one in five Australians isn’t saving any of their monthly income. And we’re all different when it comes to saving. People in Tasmania and Western Australia have the least amount of savings, while men on average have nearly 20 per cent more money saved than …

The trade war is back – what went wrong, what it means for share markets and Australia

The trade war is back – what went wrong, what it means for share markets and Australia   Key points   Consumer expectations of instant gratification are driving down delivery times   Labour shortages and traffic congestion highlight the criticality of well-located logistics facilities The trade war between the US and China has returned after talks to resolve their trade differences broke down. Our base case remains that a deal will be reached to resolve …

Why rates aren’t going up in Australia Here’s 4 reasons why:

Why rates aren’t going up in Australia Here’s 4 reasons why: It wasn’t so long ago that everyone was wondering when rates were going to rise. Now it’s looking like we will be waiting for a while before the Reserve Bank of Australia puts up official rates. We don’t expect the RBA to raise rates until 2020. How is this so, you may ask, given inflationary fears are playing some havoc with stock markets, particularly …

Balancing career, family and time (Video)

Balancing career, family and time (Video) Australians who are living their dream are planners. They believe in their ability to create the life they want and they are not afraid to ask for help or seek advice. Balancing career, family and time …. Here Christina and Richard Taylor explain how meeting a financial planner opened their mind to new possibilities for their careers, family and love for travel.  If you have a question you’d like answered …

Fixed Income view: It’s the End of the World as we know it, and I feel fine

Fixed Income view: It’s the End of the World as we know it, and I feel fine Economic momentum has gathered pace over the past 12 months, whilst the compensation for risk, known as risk premium, has deteriorated across asset markets. Valuations are expensive leaving investors highly susceptible to any macro-economic shifts, a tightening of financial conditions, and geopolitical shocks, according to AMP Capital’s Global Fixed Income Head of Macro, Ilan Dekell. “It’s critical to …

How are Australia’s states and territories tracking?

How are Australia’s states and territories tracking? An end to the fall in mining investment is helping to stabilise growth in Australia’s mining states and territories (WA, Qld and NT to a lesser extent) while a slowing housing sector is starting to act as a drag on NSW and Vic. Tas is benefitting from a lift in population growth and housing “refugee” demand from Sydney and Melbourne. Growth in SA and the ACT has been …