The Northern Territory news Thurs 14 July 2022
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Community newspapers -- Northern Territory -- Darwin.; Australian newspapers -- Northern Territory -- Darwin.
News Corp Australia
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News Corp Australia
28 BUSINESS Thursday July 14 2022 NTNE01Z01MA - V1 BILLIONAIRE investor Alex Waislitz says that equity markets are nearing the bottom amid optimism that early signs of the easing of some inflationary pressures have been spotted. Mr Waislitz a year ago predicted that interest rates would rise due to a combination of restricted supply chains in many sectors and a lack of workers that would push up wages to result in inflationary pressures across the economy. Now he says that the worst could be over for the market and a general bearish outlook on stocks in Australia and abroad could soon lift. While it is very early days, we are starting to see initial signs that the worst of the global declines may be over, Mr Waislitz (pictured) said. The price of many commodities are well off their 52week highs and we are getting reports out of the US that the pressure on supply chains which has contributed to the inflationary climate is beginning to ease. The billionaire even predicted that monetary policy would not be tightened as much in the next year as widely being predicted. This would be a positive sign and could lead to a turnaround in the current negative sentiment (given) global markets remain in a state of volatile negativity with inflation fears and interest rate concerns continuing to worry investors. Worst of declines is over i n v e s t i n g John Stensholt Hostplus warning after a super return HOSTPLUS has produced a 1.57 per cent positive investment return for its My Super balanced option fund for the financial year to June 30. The result comes at a time when industry analysts Chant West are predicting super funds will report a median investment loss of around 3-4 per cent this year. The positive return, which follows Hostplus record gain of 21.3 per cent for the financial year ended June 2021, is above that reported last week by the AustralianSuper which announced a loss of 2.73 per cent on its balanced option for the 2022 financial year. Hostplus, which has its roots in the hospitality industry, is crediting its active management strategy for delivering its higher than average return. CEO David Elia said he felt that there were now super funds who were a bit fearful in taking risks following the introduction last year of the Your Future, Your Super performance tests. He warned that funds which have just adopted cheap, passive based strategies could find themselves vulnerable to sharp falls in the market. Collectable sports cards sell for up to $140,000 on eBay NRL trading cards have boomed 2080 per cent in Australia and the nation has become the fastestgrowing collectable card-trading country on eBay. Sports trading cards have grown 649 per cent overall, with AFL cards up 337 per cent, and collectibles including Pokemon, Magic The Gathering and Yu Gi Oh! seeing 365 per cent growth in the first quarter of this year alone. The resurgence in popularity falls on the back of a 7769 per cent spike during the Covid pandemic, when many older fans of collectable cards discovered the trading cards they had hoarded in childhood had become extremely valuable. Weve seen it just really explode on eBay in terms of growth. Australia, as a region, has actually grown faster than any other region within eBay, said eBays in-house collectable card expert, Alaister Low. The most expensive card sold in Australia was NBA star Luka Doncic from the Dallas Mavericks for $140,000. All eyes focused on US inflation threat THE Australian sharemarket ended slightly higher as local investors waited on the sidelines in anticipation of the latest US inflation data. The ASX 200 index gained 0.2 per cent to 6621.6 and the broader All Ordinaries added 0.3 per cent to 6807.8. Investors have been concerned US CPI could, due out overnight on Wednesday, could hit an expected 41-year high of nearly 9 per cent. Avatrade chief market analyst Naeem Aslam said a high CPI print could see the US Fed stay on course with its aggressive monetary policy. Market players could see higher inflation as another threat, and we could see the risk-off sentiment flaring further. This is because strong inflation reading would mean a higher interest rate, and traders and investors love loose monetary policy, Mr Aslam said. The Reserve Bank of New Zealand lifted its official cash rate by 50 basis points to 2.5 per cent. On the ASX 200, the best performer was tech firm Megaport, up 7.3 per cent at $6.60, while Woodside Energy was the worst, falling 2.9 per cent to $30.10. m a r k e t s Matt Bell s u p e r a n n uat i o n Glenda Korporaal Co l l ec ta b l e s Joseph Lam ANZs potential $4bn-plus purchase of accounting technology firm MYOB has triggered fierce investor criticism, amid questions about the acquisitions logic and a notable move into non-banking businesses. ANZ on Wednesday confirmed talks with private equity behemoth KKR to buy MYOB, as part of a plan to bolster its presence in small business banking and increase its customer engagement through technology. While the bank said discussions with KKR about a potential MYOB purchase were ongoing and the parties were yet to reach agreement, the setting up of a nonoperating holding company structure by ANZ lays the groundwork for a deal. MYOB is a provider of business management, financial and accounting solutions for small and medium businesses and enterprise and accounting practice customers. ANZ will make an an Investors pan ANZs MYOB deal nouncement to the market if the negotiations are successfully completed and an agreement is entered into, the bank said. The deliberations around the MYOB deal come as ANZ led by chief executive Shayne Elliott seeks to step up in the business banking and lending market by growing market share while also getting access to a technology platform that provides deeper engagement. That comes against the backdrop of a slowdown in the home loan sector as interest rates sharply rise. Sources close to the transaction said ANZ negotiations with KKR over MYOB were at an advanced stage and the banks board was due to further discuss the mooted purchase when it next meets. A transaction may be sealed as early as this week, but requires the green light from the Australian Competition & Consumer Commission and the New Zealand Overseas Investments Office. Bank investors were, however, highly critical of ANZs proposed acquisition and move into the technology sec tor. ANZ shares closed 1.2 per cent lower at $22.43, bucking a 0.2 per cent gain on the ASX 200. WAM Leaders lead portfolio manager Matthew Haupt said MYOB was not an amazing growth business. I really struggle to see the thought process here around the banks focus, in what could be a trying period over the next six-to-12 months, he said. Is the timing right at the moment, if at all? Opal Capital Managements Omkar Joshi said it is difficult to see how the acquisition of a non-core business will add value to ANZ. Others served up a harsher verdict on ANZs slated acquisition. Its just another disaster, every time they try something like this its a failure, said a banking analyst, who declined to be named. KKR acquired ASX-listed MYOB in 2019 in two phases for about $2.4bn. MYOB posted after-tax losses of $6.5m in 2020 narrower than the $12.9m loss in 2019, the latest accounts lodged with the corporate regulator show. D e a l s Joyce Moullakis David Rogers Critics question logic of plan KMD Brands, the retailer formerly known as Kathmandu, says it is recovering from months of closures at factories in Vietnam and major shipping delays but warns the pandemic is still forcing stores to close abruptly. In a trading update, the company, which also operates the Rip Curl and Oboz brands, said it expected total sales for the year to July 31 to range between $NZ955m ($865m) and $NZ965m, with earnings to be between $NZ88m and $NZ94m. The pandemic had cost $NZ35m in lost earnings in the first half of the financial year, the company has previously said. Trading conditions improved in the second half, however Covid continues to r e ta i l Valerina Changarathil Retailer KMD upbeat on winter sales KMD Brands says trading conditions have improved in the second half of 2021-22 after a Covid-affected first half. Picture Mark Brake
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