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May 8 (Reuters) - Australia's Westpac Banking Corp (WBC.AX) on Monday threw out a cost-cutting target citing inflation and flagged thinner profit margins going ahead, but investors pushed its shares higher after it handily beat expectations for first-half profit. Westpac shares closed 2% higher, ahead of a broader market advance (.AXJO) of 0.8%, as the market cheered the better-than-expected profit. Costs for Westpac came to A$5 billion for the half, down from A$5.2 billion a year earlier. Westpac declared an interim dividend of 70 Australian cents per share, up from 61 Australian cents last year. ($1 = 1.4810 Australian dollars)Reporting by Roushni Nair in Bengaluru; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

☆ Westpac H1 profit jumps on higher interest rates, flags second-half margin pressures
▼ + stars: | 2023-05-07 | by ( ) www.reuters.com time to read: +1 min

Intense mortgage competition is expected to negatively impact industry and Westpac’s margins in the next half," it said. The country's No.3 lender said net profit came in at A$4.00 billion ($2.70 billion) for the six months ended March 31, compared with A$3.28 billion a year earlier. Net interest margin - the difference between interest earned from lending and paid for deposits - rose 5 basis points from a year earlier to 1.96% at the end of March. Westpac declared an interim dividend of 70 Australian cents per share, as compared with 61 Australian cents last year. ($1 = 1.4819 Australian dollars)Reporting by Roushni Nair in Bengaluru; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

2 lender, fell short of analyst forecasts in half-year profit released on Thursday and took a hit to its share price after warning that the windfall from rising interest rates had peaked. The update signals a tough new phase for Australia's lenders which have benefited from a year of rising interest rates by charging more to borrowers while limiting the amount they pay deposit-holders. "What the market's concerned about is the exit NIM (net interest margin)," said Hugh Dive, chief investment officer at Atlas Funds Management which holds bank stocks. In personal banking, which includes mortgages, profit shrank slightly due to a A$393 million impairment charge. The bank had telephoned 7,000 borrowers deemed to be most vulnerable to rising interest rates and just 13 had requested assistance.

☆ POLL RBA to hike rates further this year, say economists in snap poll
▼ + stars: | 2023-05-04 | by ( Devayani Sathyan | ) www.reuters.com time to read: +3 min

On May 2, the RBA startled economists and financial markets with a hike. Our expectation is that the final rate hike occurs in August. Over 85% of respondents, 25 of 29, expected no hike from the central bank at its June 6 meeting, while four predicted a 25 basis point hike. Among major local banks, only ANZ forecast a 25 basis point hike in Q3 while Westpac and CBA predicted an extended pause. Median forecasts showed the cash rate remaining at 4.10% until year-end, 25 basis points higher than the peak expected in an April poll.

☆ 40 years ago, a US Navy aircraft carrier ran aground as thousands of sailors' families watched
▼ + stars: | 2023-04-28 | by ( Miguel Ortiz | We Are The Mighty | ) www.businessinsider.com time to read: +5 min

On April 28, 1983, USS Enterprise arrived in San Francisco after an eight-month deployment. Imagine, then, the frustration felt by sailors and family members alike when a ship ran aground right before it docked. USS Enterprise sails under the Golden Gate Bridge as it returns from a deployment in April 1983. 4,500 sailors and 3,000 family members could now just see each other, but were still far from being reunited. "Our vessel is the Starship Enterprise and this is the USS Enterprise," he later said, "We've got a new drink—Enterprise on the Rocks."

☆ Bank of Japan unlikely to end yield curve control before the fourth quarter, strategist says
▼ + stars: | 2023-04-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan unlikely to end yield curve control before the fourth quarter, strategist saysSean Callow of Westpac Bank says he doesn't expect the "inflation dynamics" to change before then and "it might even be a case of next year."

The slew of soft economic data has added to fears of an impending recession in the world's largest economy, putting a lid on risk appetite and sending traders in search of some safe haven assets. The U.S. dollar index was up 0.1% at 101.95, having slid to a two-month trough of 101.40 in the previous session. The Japanese yen also found some support from safe haven bids and was last roughly 0.2% higher at 131.01 per dollar. "Weak economic data continues to weigh in on investor sentiment, triggering a flight-to-safety bid," analysts at Westpac said in a note to clients. The soft data sent U.S. shares lower on Wednesday STX/ while Treasuries advanced, which saw the benchmark 10-year yield falling to its lowest since September .

☆ Australia pauses rate hikes to assess tightening impact, Q1 inflation in focus
▼ + stars: | 2023-04-04 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

Wrapping up its April policy meeting, the Reserve Bank of Australia (RBA) did warn that "some further tightening of monetary policy may well be needed" to ensure that inflation returns to target. Markets had been wagering on a pause, while analysts were split on whether the bank would hike again given the still high level of inflation. Three-year bond futures were up 9 ticks to 97.14, with futures now also leaning towards a pause in May, implying hikes are essentially over. "The Board recognises that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt." Bill Evans, chief economist at Westpac, said there isn't sufficient evidence for the bank to change its terminal rate forecast of 3.85%, after Tuesday's pause.

☆ RBA to hike rates 25 bps on April 4 but decision on a knife edge
▼ + stars: | 2023-03-31 | by ( Shaloo Shrivastava | ) www.reuters.com time to read: +4 min

BENGALURU, March 31 (Reuters) - Australia's central bank is expected to go for a final 25 basis point interest rate hike to 3.85% on Tuesday, although forecasts from economists polled by Reuters suggest the decision on whether to hike or hold rates is on a knife edge. However, eight of the 13 economists expecting a pause pencilled in a rate hike sometime in the second quarter. Although CBA and Westpac forecast a pause in April, they expect one more rate hike in the second quarter. Minutes from the March meeting showed RBA board members reconsidered the case for a pause at the following meeting, noting monetary policy was already in restrictive territory and the economic outlook was uncertain. Although the median forecast showed the cash rate would remain at 3.85% until the end of 2023, five economists predicted it to peak at 4.10%.

☆ National Australia Bank lowers peak rate call for Australia to 3.85%, from 4.1%
▼ + stars: | 2023-03-30 | by ( Stella Qiu | ) www.reuters.com time to read: 1 min

SYDNEY, March 30 (Reuters) - National Australia Bank said on Thursday it expects Australian interest rates to peak at 3.85%, down from a previous estimate of 4.1%. NAB added it still expects the Reserve Bank of Australia to raise its official cash rate by 25 basis points in April for a final time, beginning rate cuts in the first half of 2024. "We continue to see rate cuts in H1 2024 bringing the cash rate back to 3.1% as the economy slows and unemployment rises," the bank's chief economist Alan Oster said in a statement. Fellow Australian bank Westpac also cut its peak rate forecast to 3.85% earlier this month. Reporting by Stella Qiu in Sydney Editing by Alasdair PalOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. banks fallout will intensify margin headwinds for Aussie lenders, UBS says
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

Australian banks are "well regulated" and carry strong liquidity coverage ratios, UBS said. Regulators and bankers insist the country's banks, bolstered by post-global financial crisis reforms, are well placed to handle the solvency and liquidity shocks that rocked lenders overseas like Silicon Valley Bank in the United States. Competition for mortgages, accounting for anywhere between 45% and 65% of net interest income of banks, "has never been fiercer," with some banks "sub-economically" pricing new business, UBS said. Still, the brokerage expects the bank to report strong first half earnings on sustained operational momentum. Three of the "Big Four" banks barring CBA lost between 1% and 5% from March 10 when the first signs of trouble surfaced at the tech-focused lender Silicon Valley Bank.

☆ Dollar slumps as banking crisis chips away at its haven status and makes further Fed rate hikes a coin flip
▼ + stars: | 2023-03-23 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The US dollar has slipped 2% over five trading days as the banking crisis rattles investors. The collapse of SVB and Signature Bank may threaten the greenback's haven status, one analyst said. The buck's run of losses follows the collapse of Silicon Valley Bank and Signature Bank earlier this month. The Fed shying away from hikes could also weigh on the dollar. Read more: The Fed's latest move confirms it's trying to thread the needle between cooling inflation and helping banks in turmoil

☆ U.S. dollar and Swiss franc are 'easily the weakest' of major currencies, strategist says
▼ + stars: | 2023-03-23 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. dollar and Swiss franc are 'easily the weakest' of major currencies, strategist saysSean Callow of Westpac Bank says they're "not getting that traditional safe haven demand."

☆ Australia regulator seeks risk reports from banks on startups, crypto -report
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

SYDNEY, March 22 (Reuters) - Australia's prudential regulator has started asking the country's banks to declare their exposure to startups and crypto-focused ventures following the collapse of Silicon Valley Bank, according to the Australian Financial Review (AFR). The APRA declined to comment on the report but referred to its statement last week that it would intensify supervision of the local banking industry and seek more information on any potential impact from Silicon Valley Bank's collapse. ANZ Group Holdings (ANZ.AX) declined to comment, while Commonwealth Bank of Australia (CBA.AX), Westpac Banking Corp (WBC.AX) and National Australia Bank (NAB.AX) did not immediately respond to requests seeking comment. Treasurer Jim Chalmers last week said Australia was in a good position to withstand some of the market volatility because the country's banks were well capitalised, well regulated and had strong liquidity. Reporting by Renju Jose in Sydney; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

[1/4] A combination of photographs shows people using automated teller machines (ATMs) at Australia's "Big Four" banks - Australia and New Zealand Banking Group Ltd (bottom R), Commonwealth Bank of Australia (top R), National Australia Bank Ltd (bottom L) and Westpac Banking Corp (top L). REUTERS/StaffSYDNEY, March 17 (Reuters) - An A$300 billion ($201.21 billion) refinancing task for Australia's biggest banks is about to get harder, say analysts, as appetite for new debt shrinks across global markets roiled by concerns about bank stability and liquidity. "Now major banks don't have to hit markets everyday... but ultimately banks can't stay out of the market forever." Refinancing today would add extra 5 to 10 basis points to banks' costs versus a week and a half ago, he added. ($1 = 1.4910 Australian dollars)Reporting by Lewis Jackson and Scott Murdoch; Editing by Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar finds footing as banking crisis fears calm down
▼ + stars: | 2023-03-15 | by ( Tom Westbrook | ) www.reuters.com time to read: +2 min

In early trade, the dollar selling of the past two sessions had abated and the greenback rose about 0.2% on both the euro and yen. Rallies in sterling, Scandinavian currencies, the Australian dollar and the New Zealand dollar also seemed to lose steam - though without really giving back any ground. "I think we end up with a lower Fed peak than was priced a week ago and all else equal that should result in the U.S. dollar being a bit weaker than where it was a week ago." Interest rate futures pricing now implies an 80% chance of a 25 basis point U.S. rate hike next week. The New Zealand dollar dipped 0.2% to $0.6225 and the Aussie , up 1.5% for the week so far, was flat at $0.6682 as investors caught their breath.

Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. Shares of First Republic Bank (FRC.N) tumbled more than 60% as news of fresh financing failed to reassure investors, and so did Western Alliance Bancorp (WAL.N) and PacWest Bancorp (PACW.O). U.S. bank regulators sought to reassure nervous customers on Monday who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. Regulators also moved swiftly to close New York's Signature Bank SBNY.O, which had come under pressure in recent days. In China, where SVB was the main go-to foreign bank for the majority of start-ups, entrepreneurs and venture funds were also scrambling for alternative funding.

☆ Australia consumer mood stuck in the doldrums in March
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

SYDNEY, March 14 (Reuters) - Australian consumer sentiment stayed stuck at historically depressed levels in March amid concerns over inflation and interest rates, a survey showed on Tuesday, with the appetite for buying big-ticket items especially weak. The Westpac-Melbourne Institute index of consumer sentiment was unchanged in March, following a dive of 6.9% the month before. "Index reads below 80 are rare, back-to-back reads even rarer," noted Westpac chief economist Bill Evans. "Both the COVID shock and the Global Financial Crisis saw only one month of sentiment at these levels." The index of the economic outlook for the next 12 months dropped 2.3%, though the outlook for the next five years did bounce 5.6%.

☆ Australian regulator says banks paid $3.10 bln in compensation for wrongly charged fees
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

[1/3] Australian dollars are seen in an illustration photo February 8, 2018. REUTERS/Daniel MunozMarch 10 (Reuters) - Australia's corporate watchdog said the country's six largest banking services providers have paid or offered A$4.7 billion ($3.10 billion) in compensation to customers who suffered losses for fees charged for services that were not provided. The largest business lender in Australia, NAB, took the lead and coughed up A$1.49 billion in compensation as of the end of 2022, followed by CBA and Westpac coughing up a payout of A$1.13 billion and $1.03 billion, respectively. ASIC said its final update on remediation figures "draws a line" under its eight-year long programme of addressing financial institutions' failure to provide ongoing services to fee-paying customers. ($1 = 1.5177 Australian dollars)Reporting by Riya Sharma in Bengaluru; Editing by Krishna Chandra Eluri and Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Australia's 'Big Four' banks to hike home loan rates to match RBA move
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

March 9 (Reuters) - Australia's so-called 'Big Four' banks said on Thursday they would pass on the central bank's latest quarter-percentage point interest rate hike in full to their home loan customers. Among the top four lenders, the Commonwealth Bank of Australia (CBA.AX), National Australia Bank (NAB.AX), and ANZ Group Holdings (ANZ.AX) will hike their rates from March 17, while Westpac Banking Corp's (WBC.AX) will hike its rates from March 21, the banks said in separate statements. Interest rates in the country have already gone up by 350 bps since last May, when they were at an all-time low of 0.1%. However, RBA Governor Philip Lowe said the central bank was closer to pausing its aggressive cycle of rate increases as policy was now in restrictive territory, and suggested a halt could come as soon as April. Reporting by Navya Mittal and Himanshi Akhand in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

[1/3] Students walk past stalls during the orientation week at The University of Sydney, in Camperdown, Australia February 15, 2023. 'BIG RUSH'The shortage has meanwhile jumpstarted one of the few subsets of Australian residential property, the student accommodation sector, that languished during COVID. Before 2020, Chinese students accounted for about 40% of the A$40 billion ($27 billion) Australia made educating foreigners annually. But China's reopening has raised the issue about the availability of beds in a "welcome sign" for investors, said Brad Williams, managing director of AMP Capital's diversified infrastructure trust, Australia's third-largest owner of purpose-built student accommodation. Tomas Johnsson, CEO of UniLodge Australia, the country's biggest operator of purpose-built student accommodation, said some developers were even paying more to speed up construction.

☆ Instant view: Incoming BOJ chief Ueda says current low rates appropriate
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +6 min

Feb 24 (Reuters) - Incoming Bank of Japan (BOJ) Governor Kazuo Ueda said on Friday it was appropriate to maintain ultra-loose monetary policy as inflation has yet to sustainably and steadily meet the central bank's 2% target. "I think he's intentionally doing that, so that the market will calm down a little bit about policy change expectations." "I don't think Ueda has the same stance as (Haruhiko) Kuroda but it is not clear whether Ueda would tweak the BOJ policy as the market expected." CHARU CHANANA, MARKET STRATEGIST, SAXO MARKETS, SINGAPORE"No surprises there, we expected Ueda to take it slow and he's starting off echoing Kuroda's views. He has been out of touch with the BOJ policy making since 2005 and will take time even if he was to consider policy normalisation at some stage."

☆ Asian markets breathe sigh of relief amid Ueda hearing
▼ + stars: | 2023-02-24 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

[1/2] The Japanese government's nominee for the Bank of Japan (BOJ) Governor Kazuo Ueda attends a hearing session at the lower house of the parliament in Tokyo, Japan, February 24, 2023. Ueda's confirmation hearing in the lower house comes as markets renew their attack on YCC, taking bets on a near-term interest rate rise. Japan's five-year government bond yield fell a little to 0.235%, from the previous close of 0.240%. The yield on the benchmark 10-year government bonds eased as far as 3.8590%, compared with the previous close of 3.8810%. The two-year bond yield was hovering at 4.6810%, compared with the previous close of 4.6930%.

☆ RBNZ to hike rates 50bps on Feb. 22, another 50bps due by mid-year
▼ + stars: | 2023-02-16 | by ( Devayani Sathyan | ) www.reuters.com time to read: +4 min

The RBNZ has already raised rates by a total of 400 basis points since October 2021. The remaining five economists expected a second successive 75-basis point move at the Feb. 22 policy meeting. But nearly half of respondents, 45%, predicted a lower peak rate. Inflation was expected to fall to 5.1% this year and 2.6% in 2024, a Reuters poll showed last month. A recent RBNZ survey expected price pressures to slow to 3.30% in the next two years.

☆ Analysis: Why China's reopening isn't inflationary
▼ + stars: | 2023-02-16 | by ( Rae Wee | ) www.reuters.com time to read: +6 min

However, economists see no challenge to global inflation, pointing instead to Chinese President Xi Jinping's new blueprint for self-sufficiency, broader prosperity and a socialist ideology as checks on big-ticket shopping. The slack in China's labour markets and Beijing's growth priorities will also take the edge off inflation, they say. "I don't think China's recovery or the reopening will cause any significant global inflation," said Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management. BNP's portfolio managers are positioning for China's rebound to boost regional tourism, but not export price rises for manufactured goods. "I'm very much of the view that (China's reopening) will be positive for the world in terms of either not being too inflationary, but more widely having deflation in some key new goods and services," Westpac senior economist Elliot Clarke said.

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