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Australian companies see profits slashed as inflation soars

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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.

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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A British digital currency “later this decade”

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The Bank of England and Britain’s finance ministry think the UK is likely to need to create a central bank digital currency later this decade.

“On the basis of our work to date, the Bank of England and HM Treasury judge that it is likely a digital pound will be needed in the future,” the Telegraph quoted BoE Governor Andrew Bailey and finance minister Jeremy Hunt as saying in the joint report.

“It is too early to commit to build the infrastructure for one, but we are convinced that further preparatory work is justified,” the Telegraph quoted the report saying.

The BoE declined to comment on the Telegraph article, but said a joint consultation on CBDC issues would be published shortly.

A government source said the report would be published next week.

BoE Deputy Governor Jon Cunliffe is due to give a speech on Tuesday to update the finance industry on the BoE’s CBDC work.

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Disney’s Drama

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What’s going on at Disney and why is the world’s largest entertainment company in trouble?

 
Dreams are a wish your heart makes, or at Disney, dreams are having a tough time of coming true.

After decades of turning children’s dreams into fantasies, the mouse-house is facing a crisis of leadership.

This Ticker Original looks at how the Walt Disney Company got here, and what happens next. #disney #bob iger

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Business

The Tech Market Crash

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Since the Global Financial Crisis, tech companies have been riding high and making billions, so what happened?

 
It’s been a shocking year for tech companies. Riding high off the back of the pandemic, reality suddenly hit.

Across Silicon Valley, and spreading to Wall Street, the once darlings of the Nasdaq were suddenly hit hard.

So what happened, and where to from here?

This Ticker Original investigates. #snapchat #apple #tech stocks #nasdaq

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