Money
Australia cracks the 30% threshold for women on ASX200 boards
Although gender disparity in business leadership is still a huge issue, a recent study shows that the gap is beginning to close in some areas
The University of Queensland report found that the amount of women sitting on ASX200 boards has risen from 8.3% in 2008 to 33.6% in 2021.
This makes Australia one of three countries to crack the 30% threshold without any legislated quotas.
Key driving factors include the AICD’s board mentoring program, reporting on diversity and public campaigns
Dr Miriam Yates co-authored the study along with Dr Terrance Fitzsimmons and Professor Victor Callan.
She said more transparent reporting on diversity within the ASX Corporate Governance Council is a key driver behind the shift.
“We know from the research that formalised mentoring can be the catalyst for ‘opening the door’ to under-represented group members within the workplace,” she said.
The report also found that public campaigns from institutional investors, as well as the establishment of the 30% Club Australia helped drive the increase.
“In many ways, this change was cumulative, with each initiative building on the work of that which had come before,” Dr Yates said.
However, the news wasn’t all positive
The researchers also found that a lack of affordable childcare and stereotyping have continued to act as barriers to women.
The report made a total of seven recommendations, including:
- The establishment of a formal alliance of key influencers
- The reinvigoration of board readiness and mentoring programs
- The adoption of a 40/40/20 target for board gender parity. (40 per cent female, 40 per cent male, and 20 per cent either way)
The executive of Women on Boards Claire Braund described the news as encouraging. However, she also said growth hasn’t translated through to leadership positions.
“There is not really any significant trend for the number of female chairs or CEOs on ASX200 boards. Nor is there any uptick in the number of culturally diverse directors,” Braund said.
Currently, only one in ten blue chip company chairs is a woman.
“The worst sector for representation of women on ASX boards is the ASX200+ where the number of women effectively drops off a cliff.”
The report also highlighted this trend: “Australia’s continued improvement in board diversity sits in stark contrast to our diminishing position in terms of most other gender equality indicators, including gender diversity among top executives.”
“This phenomenon is replicated in countries where quotas on boards have led to the highest rates of female board participation; such as France, Sweden, and Germany. These markets also continue to see stubbornly low levels of female executives.”
The researchers traced the increase in the ASX boardroom gender diversity back to 2009
“The nation had its first female Prime Minister and Governor-General; we were in the grip of the Global Financial Crisis; and the media in many countries was highlighting the lack of diversity on company boards,” Dr Yates said.
AGEC chair Coral Ross said the report highlights important lessons as Australia works towards equity in other facets of society.
“The achievement of more than 30 per cent of women on boards is even more remarkable given Australia’s lack of progress in other gender equality measures,” she said.
Australian Financial Review
“It’s the mosaic of all the players that has enabled this change”
“What became apparent during the research was that there was no single institution or group of institutions that coordinated the changes and initiatives that led to the increase of women board members.”
“The systemic barriers to women’s progression in the workforce remain unaddressed and are responsible for a shrinking pipeline of women into leadership positions,” she said.
“A further identified barrier was the current board skills matrix, which favours CEO experience for board positions. When just 5 per cent of CEOs are women.”
Money
Inflation rise reduces chances of Reserve Bank rate cut
Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs
Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.
The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.
The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.
Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.
The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.
Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.
The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.
Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.
Economic Pressures
Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.
Money
Wall Street hits record highs on low inflation
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.
Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.
Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.
This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.
The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.
Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.
Market Trends
Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.
Trading volume was 19.04 billion shares, lower than the average of the past 20 days.
Money
US stocks face tests from Tesla, Netflix earnings
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.
Market Volatility
Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.
Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.
The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.
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