Missed today’s headlines? Get the lowdown on the news that matters to small business owners. Here’s what you need to know on Tuesday, October 8 2019.
Consumer confidence slides following rate cut
Despite the Reserve Bank of Australia (RBA) cutting the cash rate to an all time low of 0.75 per cent last week, consumer confidence has taken a plunge according to the ANZ Roy Morgan Consumer Confidence Index.
Confidence dropped 2.1 percent from the previous week with a 4.7 percent slump in how respondents felt about their finances compared to 12 months ago.
“Last week’s bounce in ANZ-Roy Morgan consumer confidence wasn’t sustained and sentiment is now back below the long-term average,” ANZ economist Felicity Emmett told Yahoo Finance.
ASX rises buoyed by US job figures and local tech
The Aussie share market has regained ground this week following the announcement of US job figures which indicate America may not be on the brink of recession after all.
It’s good news for local investors, following a dire week on the market, where the ASX delivered its worst results in a year as global markets plunged.
The fact that the US economy looks as though it will keep its head above water for a little while longer has sparked a rung in equities,” said IG’s Kylie Rodda.
Tech stocks have gained the most momentum, up on average 1.4 per cent.
It’s payback time for ANZ
ANZ has announced a hit to its bottom line as it prepares to pay back an estimated $682 million compensation to customers it has ripped off over the past decade.
$475 million of this cost relates to charges passed on to the customer by ANZ’s retail banking service. NAB revealed a similar $1.2 billion remediation bill last week.
ANZ reported it has spent more than $1bn on compensating customers, and told The Guardian costs could climb again because “reviews remain ongoing”.