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Australian companies see profits slashed as inflation soars

Published

2 years ago

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Australian companies are feeling the pinch as inflation soars and profits are slashed

As inflation soars and wage bills increase, Australian companies are well and truly feeling the pinch.

New statistics reveal profits are down right across the private sector.

Australian companies saw a 12 per cent drop in profits in the three months to September. This is the biggest fall since the 1990s.

This comes on the day the nation’s Reserve Bank is expected to announce another interest rate hike.

This will be the eight consecutive rise.

As profits fell across a broad range of industries, Australia’s Treasurer Jim Chalmers says the country’s economy isn’t immune “from the impact of a global energy crisis and high, persistent inflation”.

“We are absolutely focused on doing what we responsibly can to ease cost-of-living pressures in ways that don’t add to inflation, and to build a more resilient ­economy”

Chalmers also warns China’s recent Covid outbreak will only put “further strain on global supply chains”. He believes this only  “increases uncertainty heading into the new year”.

“Our economic plan has been carefully designed to deal with the inflation challenge in our ­economy. To avoid putting ­upward pressure on interest rates,” Chalmers said.

Soaring energy prices are just continuing to put pressure on businesses. Salaries were also up 11 per cent in the quarter.

It’s likely this has a lot to do with the number of Australians who are employed right now and the higher wages and incentives companies are offering to attract and retain staff.

But not all industries are seeing a decline.

The Hospitality sector is booming, with earnings up by 64 per cent over three months as Australians ramp up travel following two years of Covid disruptions.

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William is an Executive News Producer at TICKER NEWS, responsible for the production and direction of news bulletins. William is also the presenter of the hourly Weather + Climate segment. With qualifications in Journalism and Law (LLB), William previously worked at the Australian Broadcasting Corporation (ABC) before moving to TICKER NEWS. He was also an intern at the Seven Network's 'Sunrise'. A creative-minded individual, William has a passion for broadcast journalism and reporting on global politics and international affairs.

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US stocks surge as banks report record profits

US stocks rise as banks report near-record profits; CPI slows, fueling hopes for continued Federal Reserve rate cuts.

Published

3 hours ago

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January 16, 2025

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US stocks rise as banks report near-record profits; CPI slows, fueling hopes for continued Federal Reserve rate cuts.

US stocks rose sharply following strong earnings reports from four major banks: JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo.

The banks reported their second-most profitable year ever.

JPMorgan achieved a historic milestone by becoming the first US bank to exceed $50 billion in annual profit.

Goldman Sachs saw record revenue from its equities trading division.

Citigroup reported record revenue in three of its five key segments: wealth management, US personal banking, and services.

Wells Fargo, while having the smallest presence on Wall Street, recorded a 62 per cent increase in annual revenue from investment banking.

Bank of America and Morgan Stanley are set to announce their results on Friday AEDT.

In other news, the core Consumer Price Index (CPI) for December rose at a slower rate than anticipated, indicating a potential easing of inflation.

This development has strengthened expectations that Federal Reserve policymakers may have room to continue cutting rates.

Consequently, the yield on the US 10-year bond dropped by 14 basis points to 4.66 per cent.

Similarly, UK yields fell by 16 basis points to 4.73 per cent after services inflation in the UK decreased to 4.4 per cent in December, down from 5 per cent in November, a more significant decline than the 4.8 per cent economists had predicted.

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Money

Bitcoin rises 2% as market awaits inflation report

Published

18 hours ago

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January 15, 2025

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As of January 15, 2025, Bitcoin (BTC) is trading at approximately $97,198, reflecting a 2.17% increase over the past 24 hours. The cryptocurrency’s market capitalisation stands at around $1.93 trillion, with a 24-hour trading volume of about $54.23 billion.

This recent uptick comes as investors anticipate the upcoming U.S. inflation report, which could influence the Federal Reserve’s monetary policy decisions.

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Money

Recovery on the horizon: investing in growth

Published

3 days ago

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January 13, 2025

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The ‘gloom to soon’ signal points to shares and property gains

Money Minute features finance expert Dr. Steve Enticott from CIA Tax, guiding audiences through practical advice and innovative strategies for financial freedom.

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