ABC The Business: What will reporting season tell us about the economy?
This week, I joined ABC’s The Business to discuss the anticipated challenges and strategies for Corporate Australia during the upcoming reporting season. Focusing on the banking sector, I particularly highlight Commonwealth Bank, underscoring the escalated competition’s effect on net interest margins, especially in the context of an uptick in distressed sales.
I shared my concerns over China’s economic downturn and its impact on reducing demand for resources, resulting in lower commodity prices and leading companies to take a more cautious approach. This includes scaling back on project investments and adopting more conservative dividend policies; suggesting we may not see an increase in dividends from the larger mining companies. While dividends might be more conservative this season, if companies manage to keep them consistent with last year’s levels, it would be a positive sign for investors.
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Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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