Latest news with #bigfour
The Australian
a day ago
- Business
- The Australian
ASX hits fresh peak on Friday despite China's unexpected economic shift
Australia's sharemarket continued its strong gains, setting a new record high for the fifth straight session as a strong start to reporting season outweighed weakness out of China. The benchmark ASX200 continued its march higher during Friday afternoon's trading, closing up 64.80 points or 0.73 per cent to 8,938.60, while the broader All Ordinaries finished the day up 63 points or 0.69 per cent to 9,212.10. Australia's dollar also traded 0.13 per cent higher and at the time of writing was buying 65.03 US cents. In a broad market rally, nine of the 11 sectors traded higher with only consumer staples and technology finishing lower. Australia's sharemarket jumped during the afternoon's trading. Picture Newswire/ Gaye Gerard. The big four all gained, led by Westpac which jumped 2.14 per cent to $36.81 after announcing strong quarterly results on Thursday. ANZ also had a strong day up 1.78 per cent to $33.08, while NAB finished 0.80 per cent higher to $39.19 and Commonwealth Bank traded 0.57 per cent higher to $168.17. The materials sector helped lift the market with BHP shares up 1.08 per cent to $41.96, Rio Tinto jumped 1.41 per cent to $115.05 and Fortescue closed 1.28 per cent higher at $19.84. The rise in the materials sector came despite weakness out of China which could impact Australia's major resources sector. AMP chief economist and head of investment strategy Shane Oliver said Chinese economic data for July was soft. 'Retail sales, industrial production and investment all rose less than expected and residential property investment and sales are continuing to fall as are home prices,' Dr Oliver said. 'Unemployment rose slightly although this possibly due to grad and typhoon season.' The market ignored pressures from China, focusing on reporting season which so far has been better than expected. 'Results have been good with more upside than downside surprises, although most results have been in line, and a big increase in the number of companies reporting profits or dividends up on a year ago than in the December half reporting season,' Dr Oliver said. 'Just bear in mind though that it was much like this at the start of the last reporting season as there is a tendency for companies with good results to report early so results may soften over the next couple of weeks.' Nine of the 11 sectors gained. Picture: NewsWire / Damian Shaw He also said consensus earnings expectations are for overall business profits to fall 1.7 per cent. If the results show this, it would be the third year in a row corporate earnings shrunk. In company news, shares in hearing implant maker Cochlear gained 0.99 per cent to $309.03 after announcing a 1 per cent increase in underlying net profits to $392m, while revenue was up 4 per cent. Cochlear said it aimed to help more than 60,000 people to hear using one of its devices over the next year, up from 53,000 in the last financial year. Shares in Amcor sank 9.70 per cent to $13.60 after announcing its fourth-quarter results showing weakness out of its North American businesses. Baby Bunting soared 40.54 to $2.60 on its latest earnings with the business aiming to double its store network. According to its results until June 29 sales grew by 4.7 per cent to $521.9m, while margins increased and underlying net profit under tax soared 228 per cent to $12.1m. Read related topics: ASXChina Ties
News.com.au
2 days ago
- Business
- News.com.au
‘Results have been good': ASX jumps on strong start to reporting season
Australia's sharemarket continued its strong gains, setting a new record high for the fifth straight session as a strong start to reporting season outweighed weakness out of China. The benchmark ASX200 continued its march higher during Friday afternoon's trading, closing up 64.80 points or 0.73 per cent to 8,938.60, while the broader All Ordinaries finished the day up 63 points or 0.69 per cent to 9,212.10. Australia's dollar also traded 0.13 per cent higher and at the time of writing was buying 65.03 US cents. In a broad market rally, nine of the 11 sectors traded higher with only consumer staples and technology finishing lower. The big four all gained, led by Westpac which jumped 2.14 per cent to $36.81 after announcing strong quarterly results on Thursday. ANZ also had a strong day up 1.78 per cent to $33.08, while NAB finished 0.80 per cent higher to $39.19 and Commonwealth Bank traded 0.57 per cent higher to $168.17. The materials sector helped lift the market with BHP shares up 1.08 per cent to $41.96, Rio Tinto jumped 1.41 per cent to $115.05 and Fortescue closed 1.28 per cent higher at $19.84. The rise in the materials sector came despite weakness out of China which could impact Australia's major resources sector. AMP chief economist and head of investment strategy Shane Oliver said Chinese economic data for July was soft. 'Retail sales, industrial production and investment all rose less than expected and residential property investment and sales are continuing to fall as are home prices,' Dr Oliver said. 'Unemployment rose slightly although this possibly due to grad and typhoon season.' The market ignored pressures from China, focusing on reporting season which so far has been better than expected. 'Results have been good with more upside than downside surprises, although most results have been in line, and a big increase in the number of companies reporting profits or dividends up on a year ago than in the December half reporting season,' Dr Oliver said. 'Just bear in mind though that it was much like this at the start of the last reporting season as there is a tendency for companies with good results to report early so results may soften over the next couple of weeks.' He also said consensus earnings expectations are for overall business profits to fall 1.7 per cent. If the results show this, it would be the third year in a row corporate earnings shrunk. In company news, shares in hearing implant maker Cochlear gained 0.99 per cent to $309.03 after announcing a 1 per cent increase in underlying net profits to $392m, while revenue was up 4 per cent. Cochlear said it aimed to help more than 60,000 people to hear using one of its devices over the next year, up from 53,000 in the last financial year. Shares in Amcor sank 9.70 per cent to $13.60 after announcing its fourth-quarter results showing weakness out of its North American businesses. Baby Bunting soared 40.54 to $2.60 on its latest earnings with the business aiming to double its store network. According to its results until June 29 sales grew by 4.7 per cent to $521.9m, while margins increased and underlying net profit under tax soared 228 per cent to $12.1m.
Yahoo
10-07-2025
- Business
- Yahoo
Capital requirement cuts – a major blow for community banks
The big four already dominate the US's banking industry – they swallow 44% of the entire sector's profits, have masses of capital to put toward technology and automation and have powerful connections among the country's top policymakers to ensure legislation goes their way. Now, it seems they'll soon have another string in their bow, and all at the expense of the US's community banks. What I'm talking about here are plans to roll back capital requirements for these industry heavyweights. Ever since Donald Trump headed back into the Oval Office, Wall Street has been expecting to feel the grip of financial regulation slacken – and those predictions are now coming to fruition. It's coming at the hands of Jerome Powell, who is gearing up to slash the enhanced supplementary leverage ratio. It requires the biggest banks to reserve a specified amount of capital based on their total leverage exposure, regardless of the risk weights of their assets. It's a shift that would free up a colossal $210bn in capital requirements, supercharging lending capacity and tech investment for the banks that already tower over their smaller competition. Look, I can understand elements of the Fed's argument. The key motivation here is to ignite the Treasury market, which, let's face it, does need all the help it can get. Under the status quo, banks are deterred from buying up treasuries. They're hesitant to add low-risk assets to their total leverage exposure, given that it disproportionately drives their capital requirements up. On the surface, I understand why Powell wants to incentivise the titans of the sector to increase their positions in this market, but the impact on smaller banks is a catastrophic consequence that, for the moment, is flying dangerously under the radar. By effectively handing over $210bn to the strongest banks in the country, the Fed will massively expand their lending capacity and send ripple effects across the entire banking ecosystem. The implications would be twofold. First, the big four would find themselves with masses of capital, sparking a race to the bottom on loan rates. They'll look to outcompete each other, driving loan rates lower and lower to attract as many borrowers as possible. Smaller banks have always offered impressively competitive fees and rates – it's been one of their strongest competitive advantages. In 2024, larger credit card issuers were far more likely to charge annual fees and higher interest rates, regardless of an individual's credit score, but as larger banks battle to outdo each other, they'll undoubtedly take the shine off smaller institutions' competitive offers. Community banks simply won't be able to compete on these new terms. They'll be priced out, handing an even greater share of the market to the industry giants. Second, the big four will have more financial firepower to drive technological advancement. They're already investing billions, with JP Morgan ploughing $18bn into tech to automate processes, personalise online banking experiences and shore up risk assessment in 2025. There is already a monumental gap, a gaping crater, between the tech capabilities of bigger and smaller banks, but stripping billions off capital rules is sure to deepen the divide. It has the potential to seriously undermine the community banks that contribute to the US's rich and diverse banking ecosystem. These smaller institutions are pivotal to their communities, are close to their customers, and we must preserve what they offer: competitive banking products that genuinely support individuals across the US. The consequences of the Fed's plans will be grave for the US's colourful banking sector, but the threats don't stop there – they could also jeopardise its entire financial system. The 2008 financial crisis is an episode of history that the US, and the rest of the world for that matter, would rather not repeat – so why are central bankers doing away with vital protections that help the country avoid such an outcome? Despite what the lobbyists may tell you, I'm not sure the biggest banks need this capital requirement cut at all – if anything, recent events have proved how effective the current rules are. The biggest 22 banks have just passed the Fed's stress tests with flying colours, demonstrating that they have sufficient capital in reserve to weather adverse economic storms. It's proof that the current rules are working as they should, and begs the question: is it really sensible to change them? For me, the answer is a resounding no. Slashing capital requirements will only risk a financial crash, allowing the biggest banks to run rampant and stamp out the community banks so pivotal to a healthy banking system. Community banks are already up against it, but I fear the Fed's plans would be the final nail in the coffin. Adam Turmakhan is the CEO and COO of TurmaFinTech, a Florida-based fintech startup that offers bespoke customer data platforms for community banks and credit unions across the US "Capital requirement cuts – a major blow for community banks" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
07-07-2025
- Business
- Times
Consulting sector rebounds amid efficiency drives and AI adoption
Britain's consulting industry is expected to return to growth this year in what could be bad news for the rest of the country's workforce. The sector struggled last year as companies reined in their spending on external advisers in the face of wars, general elections and lingering economic uncertainty. The Management Consultancies Association, in its annual industry report, estimates that the UK consulting industry was flat in 2024, with annual revenue unmoved at £20.4 billion. However, the MCA, which represents dozens of firms including the 'big four', expects the sector to rebound this year and to grow by 3.6 per cent, followed by 7.8 per cent in 2026. That growth is expected to be driven by companies bringing in experts to oversee efficiency drives, which usually take the form of job losses.
