Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
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PricewaterhouseCoopers (PWC) has recently released a report analysing how the world economy could look in 2050. As countries with large populations; including Saudia Arabia, Vietnam, Nigeria, Bangladesh and Iran, continue the urbanisation process Australia was predicted to slip from 19th in the world currently, down to 28th position by 2050. Continue…
In late 2013, I wrote a number of blogs on Liquefied Natural Gas (LNG) concluding that unless the industry cost structure in Australia changes and productivity improves, there are unlikely to be any new offshore “green field” LNG projects, except for Floating LNG facilities. Continue…
In these highlights from Your Money Your Call, David Buckland discusses the recent market rally, low interest rates and finding value on a sustainable basis. Watch here.
In this article for The Switzer Super Report, David comments on the decline of the Arrium share price as a result of the serious downturn in the price of iron ore, the difficult outlook for the steel division and the relatively high indebtedness. Read here.
It’s official. European consumer prices fell an annual 0.2 per cent in December 2014. German five-year bonds and Swiss ten-year bonds are now paying a “negative rate of interest.” European Central Bank (ECB) president Mario Draghi continues to “do whatever it takes” with last week’s announcement of the 1,100 billion euro (US$1,250 billion) bond purchase program over 2015 and 2016. Mario thinks this will steer the Euro area away from deflation by convincing investors his latest strategy is audacious enough to stimulate their relatively fragile economy. Continue…
The slump in the oil price since mid-2014 has seen global inflation rates continue to trend down. European consumer prices fell an annual 0.2 per cent in December 2014 and European Central Bank president continues to “do whatever it takes” by unveiling a 1,100 billion Euro (US$1,250 billion) bond buying program over 2015-2016. Continue…
John Mauldin from Mauldin Economics has just penned “A Five-Year Global Financial Forecast” and as investors I thought some of those points, which I have summarised below, should certainly be kept in mind.
1. The Japanese experiment with Quantitative Easing is getting dangerous; they are exporting deflation to trade competitors like Germany, China and South Korea.
2. A European crisis at least as severe as 2012 is likely. Italy and France will struggle as the structural flaws in the design of the Euro become apparent.
3. China is “approaching a day of reckoning as it tries to reduce its dependence on debt in its bid for growth, while creating a consumer society.”
4. Emerging markets which have taken on more dollar denominated debt in recent years will suffer as their currencies decline against a strongly rising US dollar.
For a copy John’s full report please click here.
And on other news:
Japanese 5 year Government Bonds hit nil percent earlier this week; and the UK inflation rate in December 2014 hit its lowest level since May 2000.UK Chancellor George Osborne said the drop in the Consumer Price Index (to 0.5 per cent) was “almost entirely driven by external factors such as the oil price” which has more than halved since June, and is “much more welcome than in the eurozone”, where inflation has fallen to negative 0.2 per cent.
With seven months to go before Australian companies commence reporting their results for the year to June 2015, it will not surprise readers to see earning per share (EPS) growth forecasts being cut to sub 5 per cent. According to Deutsche Bank, EPS growth forecasts for June 2016 financial year has also been cut to 7 per cent. The expectations for both years are below the 8 per cent average figure recorded in the 2002-2011 ten-year period.
