Reserve Bank Governor Lowe is speaking this morning regarding the Australian economy. It is still going on as I write. A few of the major point he has made are;
– Possible economic downturn not as severe as first thought.
– Expects further declines in employment.
– Economic stimulus is working.
– Economy will need support for at least a year.
– The end of wage subsidy will be a critical point.
– Negative interest rates extremely unlikely.
– UNLIKELY TO RAISE RATES FOR A FEW YEARS
In the markets:
– Atlas (TH); the toll road owner is to do a capital raising of $420m.
– Banks; can’t stop them. ANZ +6% CBA +3.9% MQG +3.7% NAB +6.3% WBC +5.6%
– Bendigo and Adelaide Bank (+7.3%); outlined a provision of $148.3m for potential future impacts on account of the COVID-19 pandemic.
– CSL (+1.3%); upgraded to Buy by a big US broker this morning.
– Mesoblast (+3%); 3Q result saw a 113% increase in revenue.
– Newscorp (+2.2%); said the bulk of its regional titles will go digital meaning the loss of between 650 and 1000 jobs. I have a list of which papers will stay and which will go digital if you want to see it. It’s a long list……..
– Southern Cross (+7%); copped a speeding ticket from the ASX after rising from 13c to 27c in 2 days. Said it is unaware of any new information.