The Centralian Advocate Fri 10 Jun 2022
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34 BUSINESS Friday June 10 2022 NTNE01Z01MA - V1 TATTOOS are welcome and lipstick is optional for crew of new budget carrier Bonza which unveiled its wear it your way uniform for the first time on Thursday. Featuring a range of pieces crew members can mix and match as they please, the uni form is intended to allow staff to express their individuality in a way other airlines strict dress codes do not. Bonza chief commercial of ficer Carly Povey said the uniform included Australian aviations first ever on-trend white custom sneakers. As well as the sneakers, crew could choose to wear tailored shorts or pants, skirts, a shirt dress, cotton T-shirt, blazer or sleeveless coat. Ms Povey said there would be no accompanying grooming guide for workers with everyone, including pilots and cabin crew, encouraged to style various looks to suit themselves. We wont dictate what lipstick to wear or whether you have to wear lipstick at all, said Ms Povey. We wont ask crew to cover up their tattoos and just because youre female, that doesnt mean you have to wear a skirt. If youre non-binary, pregnant, work in the office or on-board, we have options for you. The US-backed carrier planned to begin flights on mostly unserved regional routes in September after pushing back the start date from June. Wear it your way uniforms av i at i o n Robyn Ironside CBA says rates will drop in 23 CBAs trading update for the March quarter. The speculation about a cash rate the market is pricing in is, in our view, much higher than what is going to unfold, Mr Comyn said at the time. The banks assessment, he said, was that the market had over-estimated the level of policy tightening needed to bring inflation under control. CBA believed that four cash-rate hikes over the following six months would be sufficient to cool demand. But the banks head of Australian economics, Gareth Aird, said on Thursday that there had been a clear shift in the stance of the RBA, with governor Philip Lowe saying the board was committed to doing what is necessary to bring inflation back within its 2-3 per cent target range. The RBA has their work cut out for them on the inflation front as there is very little they can do to run against global factors that have pushed inflation higher, particularly in the energy and food space, Mr Aird said. Nonetheless, the RBA this week has signalled their intention to nor malise policy quickly by raising the cash rate by a larger than usual 50 (basis points). While economic booms could not run indefinitely, Mr Aird said not all of them had to end in a bust. Our expectation is that Australias current economic boom has a little further to run and the labour market will remain tight so we dont foresee a bust, he said. But growth momentum is anticipated to slow materially by late 2022 due to a swift and aggressive RBA tightening cycle. Deeply negative real wages growth will also weigh on the volume of spending over the rest of 2022. UBS Australia chief economist George Tharenou said he expected rates to peak in late 2022 after another 50 basis point hike in July, and 25 basis points in each of the next four months. That would lift the cash rate from its current 0.85 per cent level to 2.35 per cent. He said the higher rate profile would likely see house prices drop more than 10 per cent. Mr Tharenou expects the RBA to start cutting rates again in late 2023. COMMONWEALTH Bank has dramatically flipped its forecasts for interest rates and economic growth after the Reserve Bank shocked the market this week with an aggressive hike in the cash rate. CBAs economics team is now projecting the cash rate will reach 2.1 per cent by the end of this year, and that the RBA will actually cut rates in the second half of 2023. This led to a large revision in its Australian GDP forecast to 3.5 per cent in 2022, down from 4.7 per cent previously. Similarly, the growth outlook for 2023 was downgraded from 3.1 per cent to 2.1 per cent. Of the big four banks, CBA had the most benign outlook for official rates, predicting the cash rate would hit 1.35 per cent by the end of this year and normalise at 1.6 per cent in mid-2023. This was around half the level forecast by the market. It was a view strongly endorsed by chief executive Matt Comyn last month at b a n k i n g Richard Gluyas Backflip over interest outlook AS men head back into offices they are increasingly buying clippers and shavers to give them a clean-shaven look, helping to boost sales and profit margins for retailer Shaver Shop. The ASX-listed company which sells a raft of hair and personal grooming products across its 121 stores in Australia and New Zealand said on Thursday that consumers were also starting to come back into shopping centres, and that had translated into more business for its in-store and online platform. Total sales for the six months to May 31 were up 5.7 per cent from the same period last year. Comparable sales rose 3.7 per cent with online sales up 7.9 per cent. r e ta i l ELI GREENBLAT Clean shaven look boosts Shaver Shop The Shaver Shop CEO Cameron Fox in one of the retailers stores in Melbourne. Picture: Ian Currie Johns Lyng falls as it upgrades guidance BUILDING and restorations group Johns Lyngs shares tumbled almost 5.5 per cent on Thursday despite an earnings guidance upgrade. The group said full-year revenue was likely to come in 8 per cent higher than its February forecast at $867m, up 52.5 per cent on the previous financial year. Forecast earnings before interest, taxes, depreciation and amortisation was also up 5 per cent on earlier guidance at $83m, a rise of 57.8 per cent year on year. The upgrade is driven by ongoing strong demand for the groups core Business as Usual (BaU) services, and an increase in catastrophe (CAT) activity during FY22, primarily in northern NSW and southeast Queensland as a result of the devastating floods that impacted those regions, the company said. Group CEO Scott Didier said the upgrade followed the highest period of demand in the companys history. Johns Lyng is in the fortunate position to have not been materially impacted by inflationary or supply chain issues, he said. Johns Lyng shares fell 5.47 per cent to $5.36. Miners and banks drag ASX to four-week low HEAVY selling of the major banks and miners saw the Australian sharemarket hit a four-week low as interest rate jitters and fresh Covid-19 concerns in China ruffled investors. The ASX 200 index lost 1.4 per cent or 101.4 points to 7019.7 with all sectors bar energy in the red. US futures in addition to bearish leads from Wall Street weighed on the local market as rising oil prices and OECD forecasts fanned stagflation jit ters. Reports that Shanghai was set to lock down a district for mass testing saw Chinas market fall. Resources giant BHP fell 2.4 per cent to $46.24, while Rio Tinto lost 1.2 per cent to $117.47. Financials continued to slide with the sector off 2.1 per cent. Commonwealth Bank fell 2.6 per cent to $94.95, National Australia Bank dipped 2.3 per cent to $28.25, ANZ slumped 2.3 per cent to $23.25 and Westpac fell 3.7 per cent to $21.17 after UBS downgraded the bank from buy to neutral. Hamish Douglass in return to Magellan HAMISH Douglass will report directly to the Magellan chairman Hamish McLennan when he returns to the funds management giant he left four months ago. Magellan on Thursday told shareholders Mr Douglass, who went on medical leave in February after splitting from his wife Alexandra, would return to work but cease to be a permanent member of the companys staff. Instead, he will consult. Its a meaningful role, and Im delighted that hes back, Mr McLennan said. Magellan said Mr Douglass, the companys founder and former executive chairman, would cease to be a permanent member of staff next week and commence as a consultant in October, a role which will enable him to deliver his expertise to investors free from board, management and portfolio responsibilities. Magellan said new chief executive David George, the former deputy chief investment officer of the Future Fund, would start his tenure at the company in July not August as originally expected. Magellan shares rose 2.15 per cent to $12.82. f i n a n c e Kylar Loussikian co n s t r u c t i o n Valerina Changarathil m a r k e t s Matt Bell