Brisbane Money Management

at Indooroopilly Shopping Centre, Brisbane QLD 4068, Brisbane Australia

http://www.youtube.com/user/brismoneymanagement


Brisbane Money Management
Indooroopilly Shopping Centre, Brisbane QLD 4068
Brisbane , QLD
Australia
Contact Phone
P: 38785335
Website
http://www.brismm.com.au

Description

About us At Brisbane Money Management, our principal financial adviser, Geoff Orr, firmly believes that financial planning advice should always take into consideration your total personal and financial circumstances and be tailored to you. Geoff will consider all aspects of your personal and financial life and recommend a properly structured financial plan so that they work together. A Brisbane Money Management financial plan from Geoff will help you to successfully achieve your financial goals and needs for each stage of your life. History With the basis of BMM’s current formula originating from the 1980’s and with clients based all around the world, we are highly trusted and established private wealth managers and financial planners for private individuals and businesses. Many clients are second generation clients of BMM, highlighting the important focus we have with our clients – building a trusting relationship to truly understand your needs. BMM’s simple logo draws upon Geoff’s time in the Middle East where he started his career working in Dubai for an international Hong Kong bank: the yellow stands for wealth and experience while the blue promotes stability and confidence. Call us today to see how our wealth of knowledge can help your wealth - 07 3878 5335 or 07 3260 7700. Managing your money by helping you.. Decide what you want Structure your income Budget your expenses Manage your debts Save and Invest Fund your family when you can't Understand your investments Make the most of your super Borrow your way to wealth Plan your retirement Insure your greatest asset - You! Authorised Representative and Credit Representative of Securitor Financial Group Ltd ABN 48 009 189 495 AFSL and ACL 240 687

Opening time

  • Mondays: 09:00- 17:00
  • Tuesdays: 09:00- 17:00
  • Wednesdays: 09:00- 17:00
  • Thursdays: 09:00- 17:00
  • Fridays: 09:00- 17:00

Company Rating

6 Facebook users were in Brisbane Money Management. It's a 3 position in Popularity Rating for companies in Bank/financial services category in Brisbane, Queensland, Australia

111 FB users likes Brisbane Money Management, set it to 30 position in Likes Rating for Brisbane, Queensland, Australia in Bank/financial services category

Remember a while back I posted about a client who had taken the trouble to tell us they were really happy with the performance of their portfolio? Well, they called again today with an update: 28/10/2010 $514,252.29 Pension -$ 90,956.08 Withdrawals -$ 25,000.00 28/1/2015 $575,507.24 Still really pleased with our management of their portfolio.

Published on 2015-01-30 04:21:55 GMT

What is the key investment message overnight? The key for the success of the ECB’s forthcoming sovereign QE program is that the asset purchase program is of sufficient size to overcome a long list of technical issues of implementing it within the European charter. The program will not be as simple of those implemented by central banks in the UK, US and Japan and the reaction in the first few days of trading may be very different to the reaction over the medium to long term. If the program has an end target size of €500 billion, investors may be disappointed whereas if its €750 billion of even a €1 trillion they may just focus on the size and forget the details as the cries of economist are washed out by the running of the bulls. Markets may not react like they did in the UK, US or Japan as the program is fully factored into bond markets and if the ECB can convince investors that inflation will rise and growth strengthen then equities may rally and bonds sell off. I’m not convince that even a €1 trillion will be enough to save the Euroarea, but the bigger the program, the more time the central bank buys for governments to implement reforms on tax, industrial relations and industry policy. That is, if they are wanting to implement reforms – previous QE programs have performed so well that politicians often see much needed reforms as unnecessary. Let’s hope that is not the case in Europe. Regards, Matt Sherwood Head of Investment Research

Published on 2015-01-21 20:54:38 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT 22nd January 2015 Risk markets rally on leaks of a E50 billion ECB sovereign QE program Summar •Expectations of more central bank stimulus dominated action overnight in global financial markets with apparent leaks suggesting that the ECB has settled on sovereign bond purchases of €50 billion per month for the next 12 months to bolster growth and prevent sustained deflation. That seemed in line with previous hints by the central bank of bringing its balance sheet assets back to levels seen in 2012 and is around the same size of asset purchases (as a percent of GDP) as initial QE programs from the BoE and the US Fed. However, its wasn't a risk on rally in all assets after the leak, with German bunds rising off 7 basis points, the Euro rallied and gold declined. It may be the case that this process has dragged on so long it was mostly factored into financial market prices that it was a case a 'buy on the rumour and sell on the fact'. It can also be said that before their early programs US and UK bond yields were 80 to 100 basis points above current European rates. Elsewhere, the Bank of Canada eased official interest rates to offset the impact of lower oil prices and the Bank of England unanimously voted to keep rates on hold. There was mixed reaction overnight in markets and with an hour left to trade in the US session, the MSCI World Index is higher (+0.5%) with advances in Asia (+1.3%) Europe (+0.7%) and the US (+0.2%) • In other financial markets, 10-year government bond yields were mixed and seemed to reflect expectations of relative policy support (US Treasuries up marginally to 1.84%, UK gilts lower at 1.50% and Japanese bond markets closed at +0.24%), high beta currencies also had not consistent trend against the Greenback (AUD -0.9% to 80.95 and the Euro +0.4% to 115.95) but commodities were mostly higher: • gold -0.1% to USD1,293 per troy ounce. • Dr copper +0.5% at USC261 per pound. • base metals were mostly higher. • oil +2.7% to USD47.70 per barrel. •. The SPI suggests that the Australian market will open +32 points higher (+0.6%) at 10am AEST. Market news •. Asia - Asian sharemarkets closed higher yesterday. The Chinese market outperformed for a second consecutive session, but there was no identifiable tailwind for market sentiment with little from the macro calendar and corporate news being pretty much low key. The strength was also supportive for the Hong Kong and Australian market as investor confidence intensified amid a solid production report from BHP Billiton. In contrast, Japan was one of the few markets to decline even though the Yen was little moved, with a lack of additional easing from the BoJ at its monthly policy meeting cited for the negative sentiment. By the regional close, the MSCI Asia Index was higher (+1.3%) with advances in China (+4.8%), Hong Kong (+1.7%), Australia (+1.3%), Taiwan (+1.0%), Singapore (+0.6%), Korea (+0.3%) and India (+0.2%), whereas Japan (-0.5%) moderated. In the local market the S&P/ASX 300 Index was +69 points higher (+1.3% to 5,319) with all ten sector closing higher for the first time this year led by consumer staples (+1.9%), materials (+1.5%) and utilities (+1.4%). •. Europe - European shares closed higher as ECB speculation reversed an early decline as stocks moved into positive territory late in the session. UK shares outperformed following the BoE minutes and employment report which were constructive for sentiment as two inflation hawks voted to keep rates on hold, which was a change from their December vote, as waning inflation pressure raises concern about deflation. There was not much else around the regional and by the close, the EuroStoxx Index was higher (+0.7%) with gains in energy (+2.5%), consumer discretionary (+1.1%) and telcos (+1.0%) offset by healthcare (-0.9%) which was the only sector to decline. In the major markets, gains were led by the UK (+1.5%), with France (+0.9%) and Germany (+0.4%) also recording advances. In the periphery markets performance was also upbeat with strong gains in Portugal (+2.0%), Italy (+1.6%) Ireland (+1.1%) and Spain (+0.5%), whereas Greece (-2.4%) continues to struggle in the wake of this weekend's election. •. US - on Wall Street, with one hour left in the session, US equities are trading flat with minor movements in all major indices. Indices opened up in positive territory but as the session progressed they gave up most of their gains and are just above the breakeven line. US economic data was a bit mixed with new housing starts up solidly in December, but building permits were down -1.9% in the month, which suggests that activity is solid but is not advancing much. Elsewhere, some US corporations released earnings which were on the whole positive with results above expectations for IBM, Netflix and US Bancorp. Within the last hour of trade, the Dow Jones Industrial Average is up +3 points (+0.03% to 17,518) with the S&P 500 (+0.2% to 2,027) and the NASDAQ (+0.1% to 4,659) posting similar size movements with six sectors currently higher led by energy (+1.4%), materials (+0.6%) and utilities (+0.4%), whereas IT (-0.1%) and healthcare (-0.1%) are among the decliners. Yesterday's economic news • Australia/Asia - Consumer sentiment in Australia rose +2.4% m/m to 93.2 points for January, which is better than the December result but given rates are at all-time lows and petrol prices are at six year lows, it is somewhat of a subdued result. Indeed confidence is below the long-run average and declined -9.8% over the past year and is down -9% since the last RBA rate cut. The sentiment lift for January was concentrated in the 25-44 year age group, in metropolitan areas, among those earnings AUD40k-AUD60k and managers/professionals. More recently, one would have expected the decline in oil prices and improvements in labour market statistics to have buoyed sentiment, but it hasn’t with weak data in Europe and China seemingly dominating more positive local news. Policy makers would not be concerned at this stage but they are likely to be a bit disappointed. Meanwhile, the BoJ kept rates on hold as expected, but it did dramatically reduce its (October 2014) inflation forecasts of +1.7% to just +1.0% for the fiscal year beginning in April citing the slide in oil prices, with consumer inflation expected to lift to +2.2% in FY16. The downgrade itself was expected but the size surprised investors and the Nippon sharemarket declined as a result. . Europe - Economic conditions for British workers continued to improve in the UK where the latest labour market report for the three months to November 2014 had a positive tone. The number of people out of work declined by -58k to 1.91 million, which represents the lowest level for more than six years. More importantly, wages growth outpaced inflation (+1.0% to November and +0.5% to December) for a second consecutive month, with wages up +1.8% and UK unemployment fell to a six-year low of 5.8%. Meanwhile, the Bank of England left policy rates unchanged but hawks changed their vote and voted for a continuation of policy support as inflation declined further is response to lower oil prices. •. US - The US housing market ended 2014 with solid momentum with new homes starts rising +4.4% in December to 1089k, with the key single family homes figure, which is more representative of the bulk of market activity and of US economic activity, rising to +728k which is its highest level since March 2008. Normally activity at this time of year winds down as builders focus on finishing homes before Christmas, so a strong result can mean builders are gearing up in anticipation of robust construction activity in the New Year. However, building permits which are a bellwether indicator for construction activity in coming months fell -1.9% to an annual rate of 1031k but this series is notoriously noisy. This data reflects a steady housing market and one which is progressively recovering from the depths of the Great recession. Today's major data releases Australia/Asia • Economics - November Australian new home sales (Oct: +3.0% m/m). •. Equities - no major releases. Europe/US • Europe - January ECB interest rate decision and January Euroarea consumer confidence (Dec:-10.9). •. US - no major releases. What is the key investment message overnight? The key for the success of the ECB’s forthcoming sovereign QE program is that the asset purchase program is of sufficient size to overcome a long list of technical issues of implementing it within the European charter. The program will not be as simple of those implemented by central banks in the UK, US and Japan and the reaction in the first few days of trading may be very different to the reaction over the medium to long term. If the program has an end target size of €500 billion, investors may be disappointed whereas if its €750 billion of even a €1 trillion they may just focus on the size and forget the details as the cries of economist are washed out by the running of the bulls. Markets may not react like they did in the UK, US or Japan as the program is fully factored into bond markets and if the ECB can convince investors that inflation will rise and growth strengthen then equities may rally and bonds sell off. I’m not convince that even a €1 trillion will be enough to save the Euroarea, but the bigger the program, the more time the central bank buys for governments to implement reforms on tax, industrial relations and industry policy. That is, if they are wanting to implement reforms – previous QE programs have performed so well that politicians often see much needed reforms as unnecessary. Let’s hope that is not the case in Europe. Regards, Matt Sherwood Head of Investment Research

Published on 2015-01-21 20:54:20 GMT

What is the key investment message overnight? China may now be the world’s largest economy on a PPP basis, but in terms of economic output per capita it is still rank 89th which puts if level pegging with Peru and the Maldives. China may have grown at 10% per annum for the three decades to 2010, but there is an unambiguous structural slowdown underway as its credit-fuelled investment growth model reaches an exhaustion point and its reliance of cheap labour, heavily polluting industries and widespread housing construction is facing increased headwinds. Fixed asset investment is the primary area of moderation and in December this came in at +15.7% y/y which is a 13-year low. While China had its weakest year of growth in nearly a quarter of a century in 2014, it will moderate further this year where growth in likely to ease back to 6.8% and by 2018 growth is likely to have a five handle in front of it. This will be a painful adjustment for commodity producers including Australia, which have recorded their largest level of investment for several generations. It is arduous for Australia, not only because China is slowing down, but also the move towards a consumer-led economy will be less constructive for Australian exports regardless of whether Chinese growth holds up, or slows more than expected. If Australia does not reform its economy, it faces the lowest decade of national income growth in nearly 100 years, which will weigh not only on earnings growth, but also wages. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2015-01-20 23:36:53 GMT

While You Were Sleeping - 04 Sept 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… U.S. stocks pushed lower in late trading Wednesday, as the technology sector weighed on broader benchmarks. The Dow Jones Industrial Average edged up 10 points, or 0.06%, to 17078. The S&P 500 index shed two points, or 0.08%, to 2001, and the Nasdaq Composite Index dropped 26 points, or 0.56%, to 4572. In Europe, the Stoxx 600 ended the day up two points or 0.65% to 345 as weaker-than-expected data strengthened hopes of ECB stimulus. The FTSE 100, reached its highest intra-day level since 4 Jan, 2000, but failed to beat its highest close. The London benchmark stock-market index ended up 44 points or 0.65% to 6874. The German DAX increased 119 points or 1.26% to 9626. The French CAC was up 44 points or 0.99% to 4422.The Fed has reduced its monthly purchases of government and mortgage debt to $25 billion from $85 billion, and is on course to end the program this year. It next meets Sept. 16-17. In Australia, almost $70 billion has flowed to investors in dividends throughout 2013-14, keeping equities in favour and underscoring the country's love affair with companies which give back cash. US Treasury yields were supported by a slew of US corporate bond supply in September, after a quiet summer. There were about $21 billion in US corporate bond issues announced on Tuesday and more new deals were identified on Wednesday, including a $US1.25 billion bond issue from Lowe’s Cos. US corporate bond supply have pushed the entire yield spectrum higher, said David Keeble, global head of interest rates strategy at Credit Agricole in New York, adding that supply pressures will continue to underpin yields. Corporate bond spreads were unchanged despite strong U.S. economic data. The CDX-IG.22 index was unchanged at 57 bps. New issuers include T-Mobile USA and Frontier Communications. Portugal successfully sold on Wednesday its first bond since it bailed out Banco Espirito Santo, with expectations of more monetary stimulus from the ECB spurring yield-hungry investors to snap up the 15-year paper. Orders for the bond exceeded €8 billion, more than twice its €3.5 billion size. The 15-year bond offers a 3.875 per cent coupon and was the longest paper sold by Portugal since 2008. It follows Spain’s private placement this week of a 50-year bond offering a 4 per cent coupon. The Portuguese debt agency said half of the amount went to UK and US investors. The Greek government is planning to issue a seven-year bond in the next few months, a senior government official said on Wednesday, reflecting a new-found confidence within the country that conditions are improving. Athens is also planning to swap some of its short term three-month and six-month Treasury bills with 12, 18 or 24-month notes by the end of the year, the official said. Vietnam plans to raise $1 billion by selling dollar-denominated bonds in international markets later this year, a government official familiar with the matter said on Wednesday. “We are planning to conduct a road-show soon so that the bond sale can take place at the end of the third quarter or early in the fourth quarter,” the official said. Vietnam last raised $1 billion through a 10-year bond sale in January 2010, offering a yield of 6.95%. The money raised was for state-owned companies’ refinery, ship purchasing and power plant projects. Moody’s in July raised Vietnam’s senior unsecured and issuer bond ratings by one notch, to B1 from B2, with a stable outlook, citing the country’s emerging track record of macroeconomic stability Price moves... US Treasuries rose, pushing yields down from the highest level in three weeks, as investors continued to seek safety in U.S. government securities amid scepticism about efforts to resolve the conflict in Ukraine. The benchmark US 10-year note yield dropped for the first time in three days falling one basis point to 2.41%. The US 30-year bond ended at a yield of 3.189%. The US two-year note last yielded 0.532%. The US five-year note was last trading at a yield of 1.68%. German 10-year yields fell to an all-time low 0.866% last week and France’s declined to 1.217%. Gold for December delivery, the most actively traded contract, recently was up $1.70, or 0.1%, at $1,266.70 a troy ounce. Oil prices rallied Wednesday, almost completely erasing Tuesday's losses, light, sweet crude for October delivery rose $2.66, or 2.9%, to $95.54 a barrel and Brent prices rose $2.43, or 2.4%, to $102.77 a barrel. The US dollar index declined 0.14% to 82.84 whilst also retreating against the euro and the yen on Wednesday, as investors took profits following a rally in the green-back the day before. The dollar was recently down 0.2% against the yen at 104.96, after hitting an eight-month high of 105.32 against the Japanese currency earlier in the day. The euro was up 0.1% against the buck, at $1.3148, but remained near a 14-month low set the day before. The Australian dollar was trading at 93.41 cents early this morning, compared with 93.04 cents at Wednesday’s local close.

Published on 2014-09-04 01:47:15 GMT

While You Were Sleeping - 02 Sept 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… Markets were closed for the Labor Day holiday in the USA. European stocks advanced in the final minutes of trading, after remaining little changed for much of the day. The Stoxx Europe 600 Index added 0.3 percent to 342.86 at the close after trading about half of a point above yesterday’s close of 342 since late morning. The U.K.’s FTSE 100 gained six points or 0.08% and Germany’s DAX increased nine points or 0.09% meanwhile France’s CAC 40 slipped one point or 0.03% to 4380. The Spanish government Monday launched its long-awaited 50-year bond, stretching the maturity of the country's debt into new territory, the finance ministry said. The country raised 1 billion euros ($1.31 billion) through a so-called private placement. The country had been mulling the issuance of ultra-long paper for about a year to take advantage of the historically low borrowing costs and of investors' search for relatively higher yields within the euro zone. The newly issued bond bears an annual coupon of 4% and matures in October 2064. Europe lenders test waters on risky bank debt. The prospect of quantitative easing in Europe is reviving the market for risky bank debt, with two European lenders testing the waters on so-called contingent capital, or CoCo, bonds after a month long drought. CoCos—which can convert to equity or be wiped out if the issuer's capital levels drop below a threshold—had a booming start to the year as banks took advantage of record low rates to bolster their balance sheets ahead of a banking-system health check this fall. Issuance surged to a record €33.6 billion ($44 billion) in the first half of the year, before the market ground to a halt in July when financial difficulties at Portugal's Banco Espírito Santo and U.S. Federal Reserve Chairwoman Janet Yellen's warning about the high price of risky debt prompted investors to pull back. Price moves... Markets were closed for the Labor Day holiday in the USA. Oil prices are lower Monday even though tensions in a number of key oil-producing areas are on the rise. Brent crude oil is down 0.2% at $103.08 a barrel with WTI down 0.3% at $95.69. The dollar was slightly higher against the yen and the euro, with many investors shying away from making major moves ahead of big events later this week such as U.S. jobs data and the European Central Bank’s policy meeting. At last check, the dollar was at 104.28 yen compared with 104.08 on Friday. Meanwhile, the euro was at $1.3135 from $1.3133. The U.K. pound traded at $1.6624, from $1.6598. The Australian dollar is trading at US93.30¢, compared with US93.49¢ at Monday’s local close.

Published on 2014-09-01 23:37:52 GMT

Zurich think that, as at Friday's market close, the week was characterised by: • The latest data showing the United States recovery continues to power on. • Bankers indicating China is embarking on its largest asset sales since 2005 to clear local government and SOE debt. • France installing a new government however President Holland signalled little change in economic policies. • Yields on bonds in Europe have fallen again after the ECB comments at the Jackson Hole symposium last week. • Continued uncertainty around direction of household consumption behaviour in Japan. • Resource jobs are shrinking and mining employment in Australia is off 4% from its peak in 2012.

Published on 2014-09-01 05:46:50 GMT

What is the key investment message overnight? All eyes tonight will be on the ECB policy meeting and what Super Mario announces. 'Whatever it takes' was an astounding success, but the key question is does the ECB have what it takes? Expectations have been set high since the ECB President's Jackson Hole speech about declining inflationary expectations and the limitations of monetary policy. I have to admit I would be surprised if any action is taken tonight, not because its isn't needed, but because government reforms are only undertaken during periods of stress and a limited ECB QE may take the pressure off governments to reform tax and industrial relation systems, and on that front could be counter-productive in the long-run. As I have stated before the ECB needs to bail the banks out first then work on household balance sheets at the same time as government reform their economies in France and Italy. This tells us that there is no silver bullet to help Europe and that the reform agenda is a long and extended process. But no-one ever said that economic progress was easy or popular. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-04 01:44:04 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 4th September 2014 Potential Ukrainian ceasefire and upbeat China support risk assets. Summary • Potential for a ceasefire in the Ukraine and some upbeat service sector data in China provided a supportive backdrop for global risk assets overnight as investors await this week's policy decision from the ECB and BoE. Russia's President Putin detailed a seven point plan for peace in the Ukraine and stated that his view were close to those of his Ukrainian counterpart which buoyed sentiment in Europe despite a further decline the August service sector PMI (from 54.2 to 53.1 with the composite PMI now at a 2014 low). However, the euphoria did not flow through to the US who remains somewhat sceptical of the deal and the details. Meanwhile there were some very strong gains in Asian markets with Hong Kong recording its largest one-day gain in two years and the greater China market moved to a 15-month high as a service sector PMI moved from a nine-year low in July to a 17-month high in August. By the closing bell at the NYSE the MSCI World Index was higher (+0.5%) with gains in Europe (+1.1%) and Asia (+0.6%) offset by a moderate decline in the US (-0.1%). • In other financial markets, 10-year government bond yields were little changed and closed within three basis points of yesterday's levels (US Treasuries down to 2.397%, UK gilts higher at 2.35% and the Japanese bond market closed at 0.501%), high beta currencies appreciated against a weaker Greenback (AUD +0.8% to 93.47 and the Euro +0.1% to 131.49) and commodities were mixed: • oil +2.7% to USD95.36 per barrel. • gold +0.4% to USD1,270.60 per troy ounce. • base metals were mostly lower (other than nickel). • Dr copper -0.6% at USC311.60 per pound. • iron ore -1.7% to USD85.27 per metric tonne in US futures markets. • The SPI suggests that the Australian market will open unchanged (steady) at 10am AEST. Market news • Asia - Asian share-markets traded higher on Wednesday with Japan an early focus for investors as the Yen broke through 105 relative to the US dollar, which was cited as supportive for equities. However, an afternoon announcement cabinet reshuffle coincided with some of the index weakness. Greater Chinese markets also rallied, led by Hong Kong in response to a solid Chinese sector PMI, which was supported by several other factors including the often-discussed Hong Kong/Shanghai stock market connect. Australian stocks broadly shrugged off a slightly better-than-expected June quarter GDP numbers, with discussion of dampened easing expectations following the release likely weighing on the local index. There was not a lot more in the region and by the close, the MSCI Asia Index was higher (+0.6%) with gains in Hong Kong (+2.1%), China (+1.0%), Singapore (+0.6%), Taiwan (+0.5%), India (+0.5%) and Japan (+0.4%), whereas Korea (-0.02%) and Australia (-0.04%) were the only markets to close in negative territory. In the local market the S&P/ASX 300 Index was -2 points lower (-0.04% to 5,599) with five sectors closing in the red led by materials (-1.2%), energy (-0.9%) and consumer discretionary (-0.2%), whereas IT (+0.3%), industrials (+0.6%) and telcos (+1.1%) advanced. • Europe - European shares rallied strongly despite the regional service PMI coming in at a 2014-low, with wire service stories that the German Government was considering a contingency plan to support its economy buoying sentiment. The upbeat mood was further enhanced by a story that Ukrainian President Poroshenko and Russian President Putin were close to a ceasefire deal which sent shares rallying. While nothing was signed or even agreed, the fact that efforts were under-way to solve the conflict provided support for stocks.By the close of regional trading, the EuroStoxx Index was higher (+1.1%) with industrials (+1.8%) and banks (+1.3%) advancing with basic materials (-0.1%) the only laggard. In the major markets, gains were led by Germany (+1.3%) and France (+1.0%), with the UK (+0.6%) also posting a respectable gain, whereas in the periphery markets performance was also upbeat with century gains in Italy (+1.9%), Spain (+1.2%), Ireland (+1.2%), Greece (+1.1%) and Portugal (+1.0%). • US - on Wall Street, US equities were mixed overnight with three of the four major indexes ending in the red. Stocks received some early support from overseas developments although the sentiment surrounding the Ukraine quickly faded as there was a good deal of scepticism with most investors concluding that they'd believe it when they see it. Another strong month of US auto sales was unable to put the recovery trade back in play and with a lack of major macro news, corporate stepped in the fill the void with cautious comments on Apple responsible for the under-performance of the NASDAQ index. By the closing bell at the NYSE, the Dow Jones Industrial Average closed up +15 points (+0.1% to 17,083) with the S&P 500 (-0.1% to 2001) and the NASDAQ (-0.6% to 4,573) under-performing as four sectors closed lower led by IT(-0.7%), consumer discretionary (-0.3%) and financials (-0.1%), whereas energy (+0.3%), healthcare (+0.4%) and utilities (+0.6) advanced. Yesterday's economic news • Australia/Asia - Australian June quarter economic growth came in at +0.5% q/q which was slightly above expectations (+0.4% q/q) as improved growth in the domestic economy was offset by a large drag from net exports. The annual rate moderated to +3.1% y/y (but was up from +2.3% in H1 2013) with the main contributors being solid growth in household consumption (which added +0.3 percentage points to the quarterly figure), government consumption (+0.3%) and inventories (+0.9%) which offset declines in net exports (-0.9%), investment in plant and equipment (-0.2%) and by government (-0.2%). Meanwhile, the highest income growth in two years underpinned a slight rise in the national savings rate (from 9.2% to 9.4% of GDP), but the income side of the economy was weak with a further decline in the terms of trade (-8% over the past 12 months) culminating in nominal GDP being flat for the quarter. However, productivity continues its recent recovery rising by +0.7% in the quarter and a very impressive +3.2% over the past year, which highlights that firms are working their capital and labour harder to squeeze out margin gains. The recent Australian reporting season indicated that earnings were growing faster than the revenue growth and yesterday’s figures show the work being done by the corporate sector to boost the economy from the supply side and this is likely to persist for an extended period. Meanwhile, the main hope for revenue remains a lower exchange rate, but today’s data had no real surprise for investors or the RBA, who are likely to remain on hold for another 12 months given the trends in the currency and terms of trade. • Europe - The PMI result for the European services sector declined to a 2014-low of 52.1 in August which was in line with market expectation, but below the July reading (54.2) in yet another sign that the world’s largest trading bloc is defying policy makers' expectations (or more likely hope) of a recovery. Clearly escalating tensions in the Ukraine could be weighing on the result at the margin, but firms cutting prices is a sign that underlying weak demand is the more likely driver of the region’s economic demise. Results in Germany declined to a ten-month low, whereas France contracted for a fourth consecutive month. The composite price index, which has been in contraction territory since April 2012 declined to a three-month low of 48.9 as firms cut prices to clear markets. Meanwhile, Euro zone retail sales moderated in July (-0.4% m/m), which was in line with expectations, but downgrades to the June result culminated in the annual rate declining to +0.8% y/y. The decline in July was primarily driven by falling sales of food, drinks and tobacco. • US - No major releases. Today's major data releases Australia/Asia • Economics - July Australian retail sales (Jun: +0.6% m/m) and the July Australian trade balance (Jun: -AUD1.7 billion). • Equities - Australia Post will release its full year results. Europe/US • Europe - September ECB interest rate decision (Aug: 0.15%) and September BoE interest rate decision (Aug: 0.50%). • US - July US factory orders (Jun: +1.1% m/m) and July US trade balance (Jun: -USD41.5 billion). What is the key investment message overnight? All eyes tonight will be on the ECB policy meeting and what Super Mario announces. 'Whatever it takes' was an astounding success, but the key question is does the ECB have what it takes? Expectations have been set high since the ECB President's Jackson Hole speech about declining inflationary expectations and the limitations of monetary policy. I have to admit I would be surprised if any action is taken tonight, not because its isn't needed, but because government reforms are only undertaken during periods of stress and a limited ECB QE may take the pressure off governments to reform tax and industrial relation systems, and on that front could be counter-productive in the long-run. As I have stated before the ECB needs to bail the banks out first then work on household balance sheets at the same time as government reform their economies in France and Italy. This tells us that there is no silver bullet to help Europe and that the reform agenda is a long and extended process. But no-one ever said that economic progress was easy or popular. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-04 01:43:52 GMT

While You Were Sleeping - 03 Sept 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… U.S. stocks mostly pulled back Tuesday, as the S&P 500 lost a little steam after achieving a record close on Friday. The S&P 500 was closed down 1 point, or 0.05%, to 2,002, staying above the milestone level of 2,000. The Dow Jones Industrial Average fell 31 points, or 0.18%, to 17,068, while the Nasdaq Composite gained 18 points, or 0.39%, to 4,598. European stocks finished narrowly mixed with the Stoxx 600 ending down less than one point or 0.04% to 343. The FTSE 100 closed down four points or 0.06% to 6829. The German DAX rose 28 points or 0.30% to 9507. The French CAC 40 declined one point or 0.03% to 4378. The day’s data highlight was the Institute for Supply Management manufacturing reading, and that came in at 59.0%, easily topping expectations. Construction spending jumped 1.8% in July, also above expectations, and the final reading for Markit’s U.S. manufacturing purchasing manager’s index was 57.9 in August, down slightly from the flash reading of 58.0. In a Reuters report, U.S. investors are back in the hunt for inflation protection for the first time in two years as rising housing costs - particularly for rent - suggest inflation may finally be waking from its post-recession slumber. Inflation in the US will likely creep higher in the coming months, according to a Reuters poll of economists. The US Consumer Price Index has risen at 2 percent year-over-year for four straight months now and is forecast to accelerate to 2.2 percent later this year and into 2015, the data shows. Corporate bond spreads widened amid anticipation that the European Central Bank will announce steps to steady euro zone’s economy during its meeting this week. The CDX-IG.22 index widened by 1 bps to 57 bps. Company bonds returned 1.4 percent in August, more than recouping July’s 0.4 percent loss, according to the Bank of America Merrill Lynch U.S. Corporate & High Yield Index. Two measures of Chinese factory output released on Monday showed deceleration in August, suggesting that the economy of the world's No. 2 oil-consuming nation is entering a second slowdown this year. Also on Monday, a monthly survey of the eurozone's manufacturing sector showed slower growth in August. Price moves... Treasuries fell, pushing up yields the most in more than a month, as U.S. manufacturing grew the fastest in three years ahead of a report that may show continued U.S. job growth and amid a wave of corporate-bond sales. The US 10-year yield climbed seven basis points to 2.41%. The US 30-year bond closed yielding 3.17% with the US 2-year note ending at 0.52% and the US 5-year note yielding 1.68%. The 5-30’s spreads widened by 3 bps while 2-30’s widened by 5 bps. Gold for December delivery, the most actively traded contract, fell $22.40, or 1.7%, to $1,265 a troy ounce. Light, sweet crude for October delivery slid $3.08, or 3.2%, to $92.88 a barrel - the lowest settlement price since Jan. 14. Prices posted the largest one-day decline since Nov. 7, 2012. Brent crude prices tumbled $2.45, or 2.4%, to $100.34 a barrel, the lowest settlement since May 1, 2013. Brent's one-day loss was the largest since Jan. 2. The US dollar index was up 0.29% to 82.99. The U.S. dollar traded near its 2014 high against the yen after strong U.S. manufacturing data supported bets that the U.S. economy is healthier than that of other major developed rivals. The US dollar traded at 105.11 yen Tuesday, just below the year’s high of 105.33. Meanwhile, the pound slumped against the US dollar, trading at $1.6473, down from 1.6612 Monday. The euro traded against the greenback at $1.3132 Tuesday, about even with $1.3131 Monday. The Australian dollar is trading at US92.76 cents in early morning trading, from US92.89¢ at Tuesday’s local close.

Published on 2014-09-02 23:15:11 GMT

What is the key investment message overnight? Last night's US activity data continue to suggest that the days of zero interest rate policy in the US are numbered and has the case for policy normalisation looking increasingly sensible. More importantly, it makes the ongoing rally in US Treasuries hard to sustain and I think the longer-end of the US Treasury curve is looking expensive with investors potentially seeking a reason to sell-off in the near-term. The reports also suggest that when your banking system is fixed and household balance sheets are de-levered there is economic light at the end of the tunnel, which we are seeing in the US whereas Europe (which hasn't fixed anything yet) seemingly cannot reach escape velocity at any time in the next five years. This supports the case to be overweight European bonds (France, Italy) and underweight UK and US bonds (and Germany also). Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-02 22:23:49 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 3rd September 2014 US manufacturing data pushes bonds and equities lower. Summary • The US dollar climbed to a multi-month high against most of its peers amid fresh signs of US economy strength with the ISM manufacturing index rising to a three-year high in August and coming in well ahead of expectations. This suggests that the recent pace of employment gains in the US labour market can be sustained and is a marked contrast to PMI indices in Europe, the UK and China earlier this week, but in this environment the US share market struggled to maintain its recent momentum and closed lower. Similarly, riskless assets declined with the Yen, gold and government bond prices all lower. By the closing bell, the MSCI World Index was steady for a second consecutive day (-0.0%) with a rise in Asia (+0.3%) and Europe (+0.2%) offset by modest decline in the US (-0.1%). • In other financial markets, 10-year government bond yields rose in the wake of improving US economic data and expensive valuations (US Treasuries up to 2.42%, UK gilts increased to 2.32% and Japanese bond markets closed higher at 0.503%), high beta currencies were mixed against a stronger US dollar (AUD -0.6% to 92.78 and the Euro +0.02% to 131.31) and commodities were mostly lower: • base metals were mixed. • Dr copper -0.02% at USC313.45 per pound. • iron ore -1.3% to USD86.70 per metric tonne in US futures markets. • gold -1.7% to USD1,265.70 per troy ounce. • oil -2.7% to USD93.22 per barrel (which is close to a 2014 low). • The SPI suggests that the Australian market will open +3 points higher (+0.1%) at 10am AEST. Market news • Asia -Asian markets were broadly higher on Tuesday with the Japanese market surging to a 2014 high in light of further Yen weakness and a 17-year high for wages growth (+2.6% y/y) which further boosted sentiment. Greater China markets rallied late in the session to extend yesterday's gains and erase earlier losses in Hong Kong, amid continued speculation of further government easing following yesterday's disappointing PMI data. Meanwhile, the RBA was the primary focus in the domestic markets, keeping the target cash rate at 2.5%, which was the overwhelming market consensus. In contrast, corporate news was relegated to the back-burner with few announcements of note and by the regional close the MSCI Asia Index was higher (+0.3%) with advances in China (+1.4%), Japan (+1.1%), Australia (+0.5%), India (+0.6%) and Singapore (+0.4%), whereas Hong Kong (-0.01%), Korea (-0.8%) and Taiwan (-1.2%) were the regional casualties. In the local market the S&P/ASX 300 Index was +28 points (+0.5% to 5,602) with nine sectors closing in positive territory led by energy (+1.7%), telcos (+1.3%) and healthcare (+1.1%), whereas only utilities declined (-0.9%). • Europe - European share-markets were mixed overnight. In the morning session, indices drifted as investors shrugged off worse-than-expected June quarter GDP numbers for Switzerland and instead focused on corporate announcements, although these were limited in number and the market impact. Strong US economic data stabilised the downside and sparked some gains among periphery markets, but didn't have much impact in core markets. There was little new information in the afternoon session and at the closing bell, the EuroStoxx Index was higher (+0.2%) with gains in IT (+0.8%) and materials (+0.4%) offset by declines in utilities (-0.4%) and energy (-0.9%). Performance in the major markets was a carbon copy of yesterday with modest gains in Germany (+0.3%) and the UK (+0.1%) and a slight loss in France (-0.03%). In the periphery markets performance mixed (like yesterday) with gains in Italy (+0.5%), Ireland (+0.1%) and Spain (+0.1%) and losses in Portugal (-0.4%) and Greece (-1.1%). • US - on Wall Street, US equities indices were mixed overnight as investors returned from their labour day holiday. While the August ISM manufacturing index rose to a three-year high, the US economic recovery had a larger impact on the currency and bond market than on Wall Street. There were more M&A headlines on the wire services and while corporate targets did typically outperform, there was no broad-based thematic support for the market. As such by the closing bell, the Dow Jones Industrial Average was down -38 points (-0.2% to 17,061) with the S&P 500 (-0.1% to 2,002) and the NASDAQ (+0.4% to 4,597) outperforming as five sectors closed lower led by energy (-1.3%), utilities (-1.0%) and materials (-0.4%), whereas consumer discretionary (+0.2%), industrials (+0.2%) and financials (+0.4%) all rallied. Yesterday's economic news • Australia/Asia - The Reserve Bank of Australia left the target cash rate unchanged at 2.5% at its September meeting which was the 12th consecutive 'on hold' decision and there appear to be many more in line for investors over the next year. Like the previous four meetings there was very little change to the statement wording. Domestically, the RBA 'still expects growth to be a little below trend over the year ahead', but added that business and consumer sentiment had improved in recent months, highlighted China's weakening property market was a challenge in the short-term, resource sector capex spending is starting to decline, while non-resource capex is only seeing a modest pick-up. Overall, the Bank maintained its recent rhetoric and indicated that rates will remain on hold for a considerable period. Meanwhile, Australian building approvals recorded a small bounce in July (+2.5% m/m) which was slightly ahead of expectations (+1.9%), which means that the level of approvals has remained at recent highs now for six months and if it remains there for a couple more quarters, its impact on growth will completely dissipate, which will hinder the RBA's growth handover plan. This would occur at a time when the mining investment cliff is at its steepest in 2015/16. Elsewhere, Australia's current account deficit widened to +3.4% of GDP in the June quarter, which was in line with expectations and represents the largest deficiency in the past 12 months after the March figure (+1.9% of GDP) was the best result in the past five years. The widening in the deficit was overwhelmingly due to trade, with export volumes easing -0.8% q/q and import volumes rebounding +3.7% q/q, culminating in a large net export drag of -0.9% for today's GDP print which is shaping up at around +0.3% q/q and 2.9% y/y. • Europe - no major releases. • US - The August reading for the US ISM manufacturing index surprised to the upside with the headline reading (up to 59.0 from 57.1 in July) coming in at a three-year high which was above market expectations (of 56.7). A breakdown of the report showed that the increase was led by the new orders (66.7, which is a ten-year high) and production (64.5) components which both rose 3.3 points, while the employment sub-index (58.1) fell ever so slightly but held steady at an elevated level. Meanwhile, US construction spending rebounded strongly (+1.8% m/m to USD981 billion) in July to a 5-year high as private construction increased and state and local government outlays surged, in a further sign of vigor in the US economy. Major data releases Australia/Asia • Economics - June quarter Australian GDP (Mar: +1.1% q/q). • Equities - no major releases. Europe/US • Europe - July retail sales (Jun: +0.4%), August Eurozone service sector PMI (July: 53.5), with readings for individual countries. • US - July US construction spending (Jun: -1.8%). What is the key investment message overnight? Last night's US activity data continue to suggest that the days of zero interest rate policy in the US are numbered and has the case for policy normalisation looking increasingly sensible. More importantly, it makes the ongoing rally in US Treasuries hard to sustain and I think the longer-end of the US Treasury curve is looking expensive with investors potentially seeking a reason to sell-off in the near-term. The reports also suggest that when your banking system is fixed and household balance sheets are de-levered there is economic light at the end of the tunnel, which we are seeing in the US whereas Europe (which hasn't fixed anything yet) seemingly cannot reach escape velocity at any time in the next five years. This supports the case to be overweight European bonds (France, Italy) and underweight UK and US bonds (and Germany also). Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-02 22:23:16 GMT

What is the key investment message overnight? Investor's bullish expectations about economic growth, earnings growth and central bank stimulus will be tested this week. Yesterday's China data indicated the world's second largest economy is facing pressure from both weak domestic demand (due to week real estate activity and business investment), and the absence of growth in global trade (from a weak Europe and Japan). Accordingly, the recent stimulus package released earlier this year already seems to be losing steam and it seems that China will struggle to meet its 7.5% growth target and can only do it through either asset bubbles and government spending, neither of which are sustainable. Meanwhile, the QE bulls in Europe are in danger of disappointment if the ECB fails to deliver more dovish rhetoric and promises of action on Thursday. Indeed, with Eurozone GDP being stagnant in Q2, consumer and business confidence relapsing to an 8-month low, manufacturing activity declining a 13-month low, and regional inflation down to a 5-year low, expectations are high and pressure is mounting on the ECB to do something, other than say they will do something. However, to do so they will virtually admit that their TLTRO program will not succeed even before it starts - the program will be good for bank ROEs as more expensive funding is substituted for cheaper capital, but it will not revive domestic spending or ease deflationary pressures. As such 13% earnings per share growth in a regional growing about 1% in nominal terms is simply not sustainable and downgrades here are inevitable. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-01 23:52:08 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 2nd September 2014 Investors remain highly cautious as regional PMIs disappoint. Summary • Global bond and equity investors began the new month on a very cautious note with the latest round of regional PMIs and GDP prints giving the bulls little comfort ahead of several key risk events later this week, whereas the lingering geopolitical risks in Europe kept the bears glued to their over-valued government bond positions. Monthly manufacturing PMIs in Asia and Europe disappointed expectations and confirmed that the global recovery has hit some turbulence with investors demanding more stimulus from central banks. Trading volume overnight was light with the US markets closed for labour day holidays and corporate news was scant, was pushed to the back-burner and had little lasting market impact. As such by the closing bell, the MSCI World Index was steady (+0.0%) with a gain in Asia (+0.3%) and Europe unchanged (0.0%). • In other financial markets, 10-year government bond yields moved a couple of basis points in reasonably light volumes (US Treasuries remained at 2.34% as markets were closed, UK gilts were up slightly to 2.24% and Japanese bonds closed marginally higher at 0.493%), high beta currencies were little changed as forex market activity was very quiet (AUD -0.05% to 93.34 and the Euro -0.02% to 131.31) and commodities were mostly lower: • gold +0.1% to USD1,288 per troy ounce. • iron ore unchanged at USD87.88 per metric tonne. • oil -0.1% to USD95.86 per barrel. • Dr copper -0.1% at USC313.05 per pound. • base metals were universally lower (with losses ranging from -0.3% to -1.0%). • The SPI suggests that the Australian market will open -5 points lower (-0.1%) at 10am AEST. Market news • Asia - Asian shares traded higher to start the new week. Chinese manufacturing data dominated sentiment and came in line with expectations, although growth did moderate from its 2014 high set in July, which prompted speculation about further government stimulus, even though activity remained in expansionary territory. Meanwhile, despite some soft-ish Japanese capex data which could spark some downward revisions of June quarter GDP, the nippon market was supported by a depreciation of the Yen which firmed regional sentiment. Other than that, Indian and South Korean economic data was constructive although the flow-through to respective share-market indices was mixed. As such, by the closing bell the MSCI Asia Index was higher (+0.3%) with advances in China (+0.8%), Taiwan (+0.8%), India (+0.8%), Japan (+0.4%), Australia (+0.1%) and Hong Kong (+0.04%), whereas Korea (-0.03%) and Singapore (-0.4%) moderated from recent highs. In the local market the S&P/ASX 300 Index was +4 points higher (+0.1% to 5.574) with six sectors closing higher led by energy (+0.5%), telcos (+0.4%) and healthcare (+0.3%), whereas consumer staples (-0.5%) and IT (-0.9%) were the only noteworthy declines. • Europe - European shares were unchanged having remained range bound for most of the day. Regional manufacturing PMIs dominated early sentiment as it detailed a weakening in growth in regional industrial activity, but then investors determined that this would spark the ECB into action and markets recovered early losses. Geopolitical risks lingered, but the lack of any new major developments meant it was pushed to the back-burner and had no real impact on market trends. No companies reported earnings and few updated guidance which meant that corporate news was scant and as such markets drifted coming into the close. By the bell, the EuroStoxx Index was steady (+0.0%) as gains in healthcare (+1.1%) and consumer discretionary (+0.8%) were offset by retreats in the banks (-0.4%) and industrials (-0.7%). Among the major markets, movements were minor with the UK (+0.1%) and Germany (+0.1%) rising fractionally, whereas France (-0.03%) was on the other side of the breakeven line. In the periphery markets performance was also mixed although movements were typically larger with gains in Ireland (+0.8%) and Spain (+0.2%) and losses in Greece (-0.2%), Italy (-0.5%) and Portugal (-0.6%). • US - on Wall Street, US equities markets were closed for national holidays. Yesterday's economic news • Australia/Asia - Australian private sector inventories increased +0.9% q/q in the June quarter, which was well ahead of expectations (+0.3% q/q) and should add significantly to domestic economic growth (about +0.9% q/q) in the June quarter. Production was moderate over the quarter, but demand was softer although the vast majority (circa 80%) of this was in the mining sector (which is likely to support economic growth through net exports in the September quarter). Meanwhile, company profits were weaker than expected (-6.9% q/q) and well below market expectation (-1.8% q/q) led by mining, manufacturing and retail. These two data points suggest that there is upside potential for domestic Q2 economic growth of around +0.4% q/q). Elsewhere, Australian dwelling prices increased +1.1% m/m (+10.9% y/y) in August which was a moderation from the July pace (+1.6%) although it was still a healthy consolidation of previous price increases. Across the region, China’s official manufacturing PMI in August (51.1) slowed from its 2014 peak (51.7 in July) which was in line with market expectations. This suggests that the Chinese economy faces notable downside risks to its growth target, although a another government stimulus plan in unlikely at this stage. • Europe - Manufacturing sector PMIs across Europe were similarly downbeat as Asian readings were. For the region as a whole August's reading came in at a 13-month low (of 50.7) which was below expectations (50.8) and the July reading (51.8). In the major economies, French manufacturing (46.9) contracted for a fourth successive month, while activity in Italy (49.8) contracted for the first time in 14 months and Germany (51.4) came in at an 11-month low. On a brighter note activity increased in the stressed periphery economies improved with Greece (50.1), Spain (52.8) and Ireland (57.3) all in expansion territory. Meanwhile, German June quarter GDP was confirmed at -0.2% q/q, whereas Greece was downgraded to an annual rate of -0.3% y/y. • US - no major releases. Today's major data releases Australia/Asia • Economics - September RBA interest rate decision (Aug: 2.5%), July Australian building approvals (June: -5.0%) and June quarter Australian current account balance (Mar qtr: -AUD5.7 billion). • Equities - no major releases Europe/US • Europe - August UK construction PMI (July: 62.4). • US - August US ISM manufacturing index (July: 59.5). What is the key investment message overnight? Investor's bullish expectations about economic growth, earnings growth and central bank stimulus will be tested this week. Yesterday's China data indicated the world's second largest economy is facing pressure from both weak domestic demand (due to week real estate activity and business investment), and the absence of growth in global trade (from a weak Europe and Japan). Accordingly, the recent stimulus package released earlier this year already seems to be losing steam and it seems that China will struggle to meet its 7.5% growth target and can only do it through either asset bubbles and government spending, neither of which are sustainable. Meanwhile, the QE bulls in Europe are in danger of disappointment if the ECB fails to deliver more dovish rhetoric and promises of action on Thursday. Indeed, with Eurozone GDP being stagnant in Q2, consumer and business confidence relapsing to an 8-month low, manufacturing activity declining a 13-month low, and regional inflation down to a 5-year low, expectations are high and pressure is mounting on the ECB to do something, other than say they will do something. However, to do so they will virtually admit that their TLTRO program will not succeed even before it starts - the program will be good for bank ROEs as more expensive funding is substituted for cheaper capital, but it will not revive domestic spending or ease deflationary pressures. As such 13% earnings per share growth in a regional growing about 1% in nominal terms is simply not sustainable and downgrades here are inevitable. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-01 23:51:53 GMT

What is the key investment message overnight? With Europe’s inflation rate sinking to a 5-year low of +0.3% y/y, the ECB will remain the focus of market attention this week, as the former prepares to meet on Thursday for its monthly policy deliberation. In dealing with the Euro Crisis, the ECB so far has done nothing other than say they will do something and this is one reason why the regional inflation rate continues to inch towards the dreaded deflation zone. While the decline in European inflation in July may have been sparked by lower food and energy prices, if it persists it will dampen inflation expectations and will begin to impact consumer behaviour. Indeed, the longer it declines towards negative territory and nothing is done, the more the market will discount ‘talk’ of action and the more ECB President Draghi will be viewed as dithering like Emperor Nero while Rome burnt in 64 AD. The cushion from deflation is getting less and less and market expectations are increasing by the day, but markets need to understand that the problem of deflation is not completely monetary in its nature and as such the solution does not solely lie with the ECB. Indeed more fiscal action is required to boost demand and reforms are needed to free up the labour market and tax system to boost investment. The problem with that is that Europe already has reform exhaustion and the results from such reforms take many years to become visible. And time is one luxury that Europe simply doesn’t have. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-01 00:06:28 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 1st September 2014 Global shares move higher despite another decline in European inflation. Summary • Speculation of further ECB policy support helped pushed global share-markets to new highs over the weekend as European inflation data came in below street estimates, which sparked expectations that a historic QE program in the world's largest trading bloc in only a matter of time. Such a program has a very high hurdle rate which will probably require not only deflation, but also government reforms as those two factors need to be complements to solve economic problems, rather than substitutes. Economic data was, on balance, disappointing on Friday night with not only European inflation at a five-year low, but also US personal spending slipped -0.1% in July, which was the first decline in six months. Meanwhile the corporate news-flow on Friday was light and had little market impact and by the closing bell, the MSCI World Index was higher (+0.3%) with a loss in Asia (-0.2%) offset by modest advances in Europe (+0.3%) and the US (+0.3%). • In other financial markets, 10-year government bond yields were little moved around recent lows as investors continue to expect increased central bank support despite an improving global picture reflecting trends in the US and China (US Treasuries up to 2.34%, UK gilts lower at 2.25% and the Japanese bond market closed at 0.492%), high beta currencies were little moved in quiet trading (AUD +0.02% to 93.40 and the Euro +0.01% to 131.34) and commodities were mostly higher: • gold -0.2% to USD1,287.40 per troy ounce. • iron ore steady USD87.00 per metric tonne in US spot markets. • base metals were mostly higher (other than nickel and zinc) • Dr copper +0.3% at USC313.50 per pound. • oil +1.5% to USD95.96 per barrel. • The SPI suggests that the Australian market will open -2 points lower (-0.04%) at 10am AEST. Market news • Asia - Asian shares were mixed on Friday with the data deluge in Japan dominating investor attention with the take-outs seemingly negative. Meanwhile, the greater China market rallied in the afternoon session as rumours began to circulate of a possible reserves requirement reduction some time in the future, which would boost bank lending and household and business spending. Other than that it was bits and pieces none of which had a lasting market impact and by the closing bell, the MSCI Asia Index was lower (-0.2%) with declines in Korea (-0.4%), Taiwan (-0.4%), Japan (-0.2%) and Singapore (-0.1%) with Hong Kong steady and Australia (+0.03%), India (+0.3%) and China (+1.0%) among the few regional markets to advance. In the local market the S&P/ASX 300 Index was +2 points higher (+0.03% to 5,570) with five sectors closing lower. • Europe - European shares were also mixed on Friday, although unlike Asia they finished in positive territory. Regional economic data was disappointing with regional deflation declining to a five-year low of +0.3% in July, but investors remain firmly in the mindset that bad economic news is good market news as it increases the pressure on the ECB to act on the policy front. Geopolitical risk continue to linger and have investors increasingly nervous about increasing their risk exposure, even though Russia completely denied the presence of troops in Ukrainian territory. Other than that, there was some mixed corporate news, but these remained isolated and did not spark any notable change in market direction. As such by the closing bell, the EuroStoxx Index was in the black (+0.3%) as advances in materials (+0.8%) and healthcare (+0.6%) were offset by declines in consumer discretionary (-1.1%). Among the major markets, gains were recorded in France (+0.3%), the UK (+0.2%) and Germany (+0.1%). In the periphery markets performance was more mixed with gains in Portugal (+0.6%), Italy (+0.5%) and Spain (+0.1%) and price retreats in Ireland (-0.4%) and Greece (-0.5%). • US - on Wall Street, US equities closed higher on Saturday morning in very light trading conditions. The economic calendar was full and provided a mixed picture with personal spending declining in July, whereas consumer sentiment and the Chicago regional PMI both came in ahead of consensus. Geopolitical headlines filled the wire services but there were no new developments and this known volatility source had little market impact as investors prepared for the long weekend. As such, by the closing bell at the NYSE, the Dow Jones Industrial Average closed up +19 points (+0.1% to 17,098) with the S&P 500 (+0.3% to 2,000) and the NASDAQ (+0.5% to 4,580) outperforming, as all ten GICS sectors advanced led by utilities (+0.*%), telcos (+0.7%) and financials (+0.5%). Friday's economic news • Australia/Asia - Investors takeaways from the deluge of Japanese data out on Friday were, on balance, slightly negative. Inflation and employment data both came in line with expectations and had little market impact, however, weaker-than-expected industrial production for July (+0.2% m/m against street estimates of +1.0% m/m) prompted some concerns that the post sales-tax hike rebound may be weaker than expected. Consumer spending also came in below street estimates (-5.9% y/y, relative to -3.0% y/y), however this negative sentiment was tempered to some degree by an unexpected rise in retail sales for the month (+0.5% m/m) against expectations for a modest decline (-0.1% m/m). • Europe - The Euro area unemployment rate was steady at 11.5% in July, which was in line with consensus forecasts and the June reading. Meanwhile, regional inflation declined to a fresh 5-year low in August of +0.3% y/y, which matched market expectations and should alarm the ECB although an immediate policy response remains highly unlikely as the decline was primarily driven by moderations in food and energy prices, without which core inflation rose from +0.8% y/y to +0.9% y/y over the month. The ECB targets an inflation rate at close to +2% over the medium term, a level not seen since the first quarter of 2013. • US - The US economic calendar was busy on Friday night with July US personal income (+0.2% relative to expectations of +0.3% and the June result of +0.5%) and July US personal spending (-0.1%, +0.2%, +0.4% m/m) coming in below expectation, with the national savings rate rising to +5.7%, which was the highest since end-2012. Meanwhile, headline and core PCE for July (+0.1% m/m and +1.6% y/y) was in line with street estimates and remains below the US Fed's +2% target, which suggests that there is no need for the US central bank to raise rates in the near-term. On a more positive, note, the final August University of Michigan consumer sentiment report was revised higher (to 82.5 vs 80 consensus and from the preliminary 79.2) and the August Chicago PMI rose ( to 64.3, 56.5 and 52.6) with strong gains in production, new orders and backlogs. Employment was the only component that declined over the month, but it remained firmly in expansionary territory. Monday's major data releases Australia/Asia • Economics - June quarter Australian company profits (Mar qtr: +3.1%), August Australian house prices (JUL: +1.6% q/q) and August China service sector PMI (Jul: 51.7). • Equities - no major releases. Europe/US • Europe - August Euro area manufacturing sector PMI (prelim: 50.8) with readings for member countries, final June quarter German GDP (prelim: -0.2% q/q) and UK manufacturing sector PMI (Jul: 55.4). • US - no major releases. What is the key investment message overnight? With Europe’s inflation rate sinking to a 5-year low of +0.3% y/y, the ECB will remain the focus of market attention this week, as the former prepares to meet on Thursday for its monthly policy deliberation. In dealing with the Euro Crisis, the ECB so far has done nothing other than say they will do something and this is one reason why the regional inflation rate continues to inch towards the dreaded deflation zone. While the decline in European inflation in July may have been sparked by lower food and energy prices, if it persists it will dampen inflation expectations and will begin to impact consumer behaviour. Indeed, the longer it declines towards negative territory and nothing is done, the more the market will discount ‘talk’ of action and the more ECB President Draghi will be viewed as dithering like Emperor Nero while Rome burnt in 64 AD. The cushion from deflation is getting less and less and market expectations are increasing by the day, but markets need to understand that the problem of deflation is not completely monetary in its nature and as such the solution does not solely lie with the ECB. Indeed more fiscal action is required to boost demand and reforms are needed to free up the labour market and tax system to boost investment. The problem with that is that Europe already has reform exhaustion and the results from such reforms take many years to become visible. And time is one luxury that Europe simply doesn’t have. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-09-01 00:06:10 GMT

While You Were Sleeping - 01 Sept 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… Stocks closed out a strong month on a quiet note, with the S&P 500 posting a modest gain to close at a new record as the latest in a string of positive data helped extend a rally that had been briefly threatened by overseas concerns. The Dow rose 19 points or 0.11%, to 17,098, the S&P 500 gained seven points or 0.33%, to 2,003 and the Nasdaq added 23 points or 0.5%, to 4,580. For the month the Dow was up 3.2%, the S&P 500 rose 3.8% and the Nasdaq climbed 4.8%. The Stoxx Europe 600 closed up almost one point or 0.28% to 342. The FTSE 100 ended up 14 points or 0.20% to 6820. The CAC closed up 15 points or 0.34% to 4381. The DAX gained eight points or 0.08% to 9470. US Consumer spending fell in July for the first time in six months, but a rise in confidence among households in August to a seven-year high suggested the retrenchment was likely temporary. Other data showed a sharp acceleration in factory activity in the Midwest, underscoring the economy's relatively strong fundamentals. Corporate bond spreads were unchanged in drying liquidity ahead of the labour day holiday. Investors in U.S.-based funds poured $6.1 billion into stock funds and $672 million into high-yield bond funds in the week ended Aug. 27 on continued appetite for risk assets, data from Thomson Reuters' Lipper service showed on Thursday Price moves... US Treasuries gained the most this month since January as faltering European growth and turmoil in Ukraine prompted investors to seek higher-returning U.S. government debt even with the economy strengthening. Yields on U.S. bonds reached the highest since 2007 versus developed-nation peers as euro-area rates tumbled. The difference between yields on U.S. five- and 30-year debt flattened to the least since January 2009 even as data showed the U.S. economy grew more than forecast in the second quarter. A report this week is forecast to show the U.S. added more than 200,000 jobs for a seventh straight month. US 30-year bond yields sank 24 basis points this month, also the most since January, to 3.08 percent. The US 10-year note yield dropped 21 basis points, or 0.21 percentage point, in August to 2.34. Corporate junk bonds posted a total return of 1.56% in August through Thursday, U.S. investment-grade corporate bonds returned 1.49% and U.S. municipal bonds returned 1.15%, according to data from Barclays PLC. Gold for December delivery, the most active contract, settled $3, or 0.2%, lower at $1,287.40 a troy ounce. Light, sweet crude for October delivery rose $1.41, or 1.5%, to $95.96 a barrel. Oil prices lost 2.3% for the month. Brent settled up 73 cents, or 0.7%, at $103.19 a barrel. Prices fell 2.7% the month. The US dollar rose, with traders looking beyond soft consumer spending data, while the steadily sliding euro won a reprieve on diminished expectations the European Central Bank will soon ease monetary policy. Against the US dollar, the euro lost 0.33% to $1.3138. The US dollar index was up 0.27% at 82.70. Against the yen, the US dollar was up 0.32% at 104.03 yen.

Published on 2014-08-31 23:57:16 GMT

What is the key investment message overnight? Over the past three years, bad economic news has been good market news as it has meant more central bank support. However, nowadays the US (outside housing) continues to improve and paint a picture of an economy which is in a recovery phase. In 2014 the US has moved out of intensive care and has gone back to the ward and in 2015, the economy will be back to full health. Last night's data was very encouraging, not only was growth higher than expected, but the composition was constructive with solid growth in consumer spending and business investment, with a low contribution from an inventory build. However, investors need to be mindful that in 2015 and beyond, growth won't be back to a trend rate of +3.7% since 1960. Growth in the next year will be around +3%, but when rates begin to rise it will gravitate towards its new trend rate of around +2.2%. This will still be constructive for shares, but the outlook for the bond market is not overly bad, unless growth continues to surprise on the upside and the US Fed has to undertake a more aggressive tightening cycle. In this world, good economic news will be bad market news. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-28 23:22:05 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 29th August 2014 - Escalating geopolitical tensions spark losses in all regions. Summary • Escalating tensions over the situation in the Ukraine sparked heightened risk aversion in markets overnight and pushed regional share prices lower and culminated in another decline in global bond yields. NATO claimed that more than 1,000 Russian troops were operating inside the Ukrainian border, with some Ukrainian ministers calling it 'an invasion' which sparked an adverse impact on global markets. As such Russian assets were subjected to notable downward pressure, however, an encouraging batch of US economic data cushioned the downside risks in the US share-market. Meanwhile, data was mostly in line with expectations in Europe, although Spain dropped into deflation territory and Belgium recorded a sharp drop in consumer prices in July. There was heightened demand for safe-haven plays with gold, the Yen, US dollar and major government bonds all higher on the day. By the close of trading in New York, the MSCI World Index was lower (-0.5%) with losses in the US (-0.2%), Asia (-0.3%) and Europe (-1.0%). • In other financial markets, 10-year government bond yields continued to decline as investors recalibrated portfolios and increased their exposure to safe havens (US Treasuries down to 2.33% which is a 14-month low, UK gilts declined to 2.26% which is a 14-month low and Japanese markets closed at yet another 16-month low of 0.485%), high beta currencies were mixed (AUD +0.2% to 93.54 and the Euro -0.1% to 131.84) as were commodities: • oil +0.8% to USD94.64 per barrel. • gold +0.6% to USD1,290.55 per troy ounce. • base metals were mostly lower (other than tin (+0.1%) • iron ore -1.1% to USD87.00 per metric tonne in US futures markets. • Dr copper -1.7% at USC312.45 per pound. • The SPI suggests that the Australian market will open -5 points lower (-0.1%) at 10am AEST. Market news • Asia - Asian markets traded lower on Thursday, with a mixed opening eventually giving way to an escalation of selling pressure in the afternoon session. Economic data was supportive with Australian Capex coming in ahead of expectations which sparked a rise in the Australian dollar, but there was little spill-over into the domestic equity market. China developments dominated regional sentiment with mainland interest rates spiking higher despite repeated PBoC liquidity injections. Meanwhile, Indian railway-linked shares were boosted by government freeing up rules in relation to local and foreign investment. Other than that, there was no an awful lot around the region, but tomorrow in a rich second-tier data day, which should drive regional directions. Nevertheless, by the closing bell in Mumbai yesterday, the MSCI Asia Index was lower (-0.3%) with price retreats in Hong Kong (-0.7%) ,China (-0.6%), Australia (-0.5%), Japan (-0.4%), Singapore (-0.3%) and Taiwan (-0.1%), whereas Korea (+0.04%) and India (+0.2%) were the only bourses to advance. In the local market the S&P/ASX 300 Index was -26 points lower (-0.5% to 5,568) with eight sectors closing in the red led by materials (-1.1%), energy (-1.0%) and consumer discretionary (-0.9%), whereas telcos (+0.1%) was the only noteworthy advance. • Europe - European shares closed lower with Russia accused of a military incursion in the Ukraine which prompted investors to take risk off the table and purchase expensive government debt. This sparked a widening in periphery debt spreads and some sizable losses in periphery share indices. Meanwhile, economic data was mostly in line with expectation other than Italian retail sales which were well below street estimates. However, corporate data disappointed expectations with several companies dropping by more than -10% with results coming in well below expectations. Other than that, eyes were focused on tonight's CPI print and whether regional deflationary pressure are taking hold, and more importantly, what the ECB policy response is likely to be. Nevertheless, by the close of trading the EuroStoxx Index was lower (-1.0%) with sharp declines in resources (-2.3%) and banks (-1.3%), whereas healthcare (-0.2%) and telcos (-0.02%) outperformed the broader market. Among the major markets, losses were led by Germany (-1.1%), with France (-0.8%) and the UK (-0.4%) also lower. In the periphery markets performance was more downbeat with large losses in Italy (-2.0%), Portugal (-1.1%), Spain (-1.1%) and Greece (-0.6%), whereas Ireland (+0.3%) defied the regional trend and was the only market to close in positive territory. • US - on Wall Street, US equities were mostly lower, dragged down by an escalation in geopolitical concerns, although the decline was modest relative to the recent run-up in regional prices. Market volume was low as US markets prepare for the upcoming labour day holiday and constructive US economic data did little to lift the mood, with June quarter US GDP, July pending home sales and this week's initial jobless claims all coming in ahead of expectations. In contrast, earnings from the retail sector continue to disappoint with Williams-Sonoma the latest company to post weaker earnings, although the market impact was also limited. By the closing bell at the NYSE, the Dow Jones Industrial Average was down -42 points (-0.3% to 17,080) with the S&P 500 (-0.2% to 1,997) and the NASDAQ (-0.3% to 4,557) posting similar losses as seven sectors closed lower led by financials (-0.4%), industrials (-0.3%) and IT (-0.2%), whereas materials (+0.1%) and utilities (+0.7%) were the only sectors to advance. Yesterday's economic news • Australia/Asia - Headline capex came in ahead of expectations in the June quarter (+1.1% relative to -0.5% q/q) which partially retraced some of declines over the prior two quarters, as gains in construction (+2.0% q/q) offset declines in equipment (-0.9% q/q). There were also upgrades to the March quarter data, however, more importantly the outlook for FY15 was revised lower (by -5%), which was in line with market expectations, with declines in mining (down to -21% from -15%) and non-mining (+9.0%, +12.0%). On balance, the data shows that mining capex is clearly deteriorating and manufacturing expectations remain very poor (both of which should not be a surprise to policy makers). This indicates that Glenn Steven's much desired 'animal spirits' are nowhere in sight in these two sectors as domestic demand expectations remain modest and firms seem to be running depreciated assets a bit longer, rather than opting to deploy balance sheet capital. However, outside these two sectors activity is hanging onto its recent gains which is important, yet despite this June quarter domestic economic growth remains about +0.2% q/q, with risks evenly balanced. Overall, despite the better than expected headline number, which sparked a higher Australian dollar, the results were a touch disappointing as they show a growth handover is occurring, but is happening at too slow a pace. • Europe - German unemployment (6.7%) and inflation (+0.8% m/m) for July were in line with market expectations as was Eurozone economic sentiment (100.6). The German inflation report seems to negate the risk of another substantial slide in regional inflation even though Spain (-0.5% y/y) moved into the deflationary camp and Belgium also recorded a sharp drop in monthly consumer prices. • US - US GDP growth for the June quarter was revised higher to +4.2% (from an originally reported 4.0%), which was ahead of street estimates of a slight downgrade (to +3.9%) but this failed to provide much spark for risk markets. The composition of the revision was constructive with a larger contribution from business investment and a slower inventory build. Meanwhile, initial jobless claims were little changed at 298K, holding below the 300K level which is close to a seven-year low. Elsewhere, pending home sales rose +3.3% m/m in July, which was its fourth gain in the past five months with the result coming in ahead of consensus (at +0.5%), but their was a modest downward revision to the June result. Major data releases Australia/Asia • Economics - July Australian private sector credit growth (Jun: +0.7% m/m). • Equities - Woolworths, Virgin Australia, Harvey Norman and Transfield release their earnings reports. Europe/US • Europe - July Euro area unemployment rate (Jun: 11.6%) and June quarter final Italian GDP (prel: -0.1% q/q). • US - July US personal income (Jun: +0.4% m/m) and July US personal spending (Jun: +0.4% m/m) What is the key investment message overnight? Over the past three years, bad economic news has been good market news as it has meant more central bank support. However, nowadays the US (outside housing) continues to improve and paint a picture of an economy which is in a recovery phase. In 2014 the US has moved out of intensive care and has gone back to the ward and in 2015, the economy will be back to full health. Last night's data was very encouraging, not only was growth higher than expected, but the composition was constructive with solid growth in consumer spending and business investment, with a low contribution from an inventory build. However, investors need to be mindful that in 2015 and beyond, growth won't be back to a trend rate of +3.7% since 1960. Growth in the next year will be around +3%, but when rates begin to rise it will gravitate towards its new trend rate of around +2.2%. This will still be constructive for shares, but the outlook for the bond market is not overly bad, unless growth continues to surprise on the upside and the US Fed has to undertake a more aggressive tightening cycle. In this world, good economic news will be bad market news. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-28 23:21:30 GMT

While You Were Sleeping - 29 Aug 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… U.S. stocks fell on Thursday as renewed tension on the Russia-Ukraine border overrode any enthusiasm for upbeat economic reports. The Dow Jones Industrial Average fell 42 points, or 0.25%, to 17080. The S&P 500 declined three points, or 0.17%, to 1997, while the Nasdaq Composite dropped 12 points, or 0.26%, to 4558. The Stoxx Europe 600 fell two points or 0.66%. The FTSE 100 ended 25 pointer or 0.36% lower to 6806. The CAC 40 declined 29 points or 0.66% to 4366. The DAX closed down 107 points or 1.12% to 9463. The US seven-year notes sold today yielded 2.045 percent, matching the average forecast in a survey by Bloomberg News of six of the Federal Reserve’s 22 primary dealers, which are obligated to bid in U.S. debt sales. The yield at the last offering of the maturity on July 30 was 2.250 percent. The sale’s bid-to-cover ratio was 2.57, matching the average at the past 10 auctions. Indirect bidders, an investor class that includes foreign central banks, purchased 48.8 percent of the notes, the most since April, compared with an average of 42.7 percent for the past 10 sales. Direct bidders, non-primary dealer investors that place their bids directly with the Treasury, purchased 20.4 percent of the notes, the most since May, compared with an average of 20.9 percent at the last 10 auctions. The euro fell against the dollar, yen and pound Thursday on data showing accelerating deflation in Spain and renewed conflict between Russia and Ukraine. The euro traded at $1.3165 Thursday, down from $1.3192 late Wednesday. U.S. Q2 GDP revised up to 4.2 percent. Gross domestic product grew at a seasonally adjusted annual rate of 4.2% in the second quarter after accounting for inflation, the Commerce Department said. The agency last month initially estimated the second-quarter growth rate at 4%, relying on incomplete trade and other data. GDP contracted at a 2.1% pace in the first quarter, dragged down by falling exports and a slowdown in consumer spending that was attributed partly to severe winter weather. Indicators for July have generally been positive so far. U.S. industrial production rose 0.4% from June, according to the Federal Reserve. Housing starts climbed 15.7% and new orders for durable manufactured goods soared 22.6% on a surge in aircraft purchases, the Commerce Department said. But retail sales in July were flat from the prior month, suggesting consumers remain constrained by weak wage growth. Final sales to domestic purchasers—a version of GDP that includes imports and strips out exports and inventory changes—expanded at a 3.1% pace in the second quarter, revised up from an earlier estimate of growth at a 2.8% pace. The number of Americans filing for unemployment claims fell slightly more than expected. The labor market has made stronger strides this year. The last six months saw the strongest stretch of payroll gains since 2006, and July was the first time since 1997 that employers added 200,000 or more jobs in six consecutive months. The unemployment rate last month was a seasonally adjusted 6.2%, down from 7.3% a year earlier Price moves... US Treasuries gained, with 30-year bond yields touching a 15-month low, as rising tension in Ukraine and speculation the European Central Bank will buy bonds overshadowed data showing the U.S. economy strengthened. US 30-year yields fell three basis points to 3.08%. The US benchmark 10-year note yield decreased two basis points to 2.34%. The yield on the current US seven-year note declined two basis points to 2.02%. The US two-year notes were trading at 0.50%. Light, sweet crude for October delivery settled up 67 cents, or 0.7%, at $94.55 a barrel, a six-session high. Brent fell 26 cents, or 0.3%, to $102.46 a barrel. Gold pulled back from one-week highs, the most actively traded contract, for December delivery, was up $10.70, or 0.8%, at $1,294.10 a troy ounce. The US dollar got a modest lift on Thursday from better-than-expected U.S. economic data and a worsening of the Ukraine crisis that weighed on the steadily declining euro. The Dollar Index climbing to an intraday high of 82.55. The US dollar remained lower against the yen at 103.70 yen and at $1.3179 against the euro. The Australian dollar was fetching 93.55 cents on Friday morning, holding steady against Thursday’s local close of 93.51 cents.

Published on 2014-08-28 23:12:18 GMT

What is the key investment message overnight? It seems that markets cannot get enough of regional central banks and their stimulus drug and when one supplier says there is no more, they look around for someone else to provide the supply. As such, US share-markets are at all-time highs and European debt is at all time lows. Indeed, at one point overnight, the yield on Germany’s 10-year bund traded through 0.9%, while yields on paper with maturities of one to three years were all negative. The ECB next meets on September 4 and market expectations are building about a stronger policy response, however, it may be the case that the ECB will want to see more data before initiating an historic program, even though they have appointed Blackrock overnight to advise on a program of asset-backed security purchases. However, this is unlikely to achieve much as the Euro yields are already extremely low due to deflation fears and, as Japan is finding out a lower currency does not spark an increase in export demand (this occurs when growth in export partner economy's increases). However, it will be good for financial markets as lower rates are likely to spark a switch from overpriced bonds into higher yielding equities, even though earnings downgrades in Europe appear to be a sure thing considering how weak the 2014 recovery has been. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-27 23:06:00 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 27th August 2014 Markets struggle to hold on to their recent momentum. Summary • Markets struggle to hold their strong recent upward surge overnight as the bulls took a break from their recent frenetic buying which took some markets up to record highs. There was little in the way of market moving news, the focus remained squarely on the ECB, with German yields declining to all time lows and even Portugal declined below 3% for the first time in history despite the obvious overhang of its high debt. Corporate news was limited and had no ability to build a market-wide them behind and markets seemed to drift in light trading. In the commodities space, iron ore dropped to a two year low intra-day in US spot markets, which is likely to weigh on Australian material stocks today. By the closing bell at the NYSE, the MSCI World Index was steady (+0.0%) with gains in Asia (+0.3%) and Europe (+0.1%) and a flat result in the US. • In other financial markets, 10-year government bond yields recorded sharp declines as the ECB effect lingered and investors purchased government debt in large volumes (US Treasuries down to 2.36% which is close to a 14-month low, UK gilts lower at 2.26% which is a 13 month low and Japanese bonds declined to 0.49% which is a fresh 16-month low), high beta currencies appreciated against a weaker green-back (AUD +0.3% to 93.34 and the Euro +0.2% to 131.94) and commodities were mostly lower: • iron ore -1.1% to USD88.00 per metric tonne in US futures markets (which is its eighth consecutive decline with prices now at a two-month low and close to a two-year low). • Dr copper -0.4% at USC317.40 per pound. • gold -0.1% to USD1,283.90 per troy ounce. • oil -0.3% to USD93.83 per barrel. • base metals were mixed (with nickel and aluminium higher). • The SPI suggests that the Australian market will open -14 points lower (-0.3%) at 10am AEST. Market news • Asia - Asian markets recorded modest gains on Wednesday with a quiet macro calendar and limited corporate news meaning that the market fed off offshore leads and remained range-bound for most of the session. Hong Kong was the sole decliner across the region as the corporate calendar detailed a slowdown in the property sector in greater China, with several reporting companies detailing weaker activity which exacerbated fears of a deeper and more protracted slowdown in activity. Conversely, car makers supported mainland shares as reports detailed that the Chinese government will announce a CNY100 billion program to support electric car manufacturers. By the closing bell in Mumbai, the MSCI Asia Index was higher (+0.3%) with advances in Taiwan (+1.0%), Singapore (+0.6%), India (+0.5%), Korea (+0.3%), Australia (+0.2%), China (+0.1%), Japan (+0.1%), whereas Hong Kong (-0.6%) retreated. In the local market the S&P/ASX 300 Index was +13 points (+0.2% to 5,594) with gains led by healthcare (+0.7%), materials (+0.6%) and financials (+0.6%), whereas consumer discretionary (-0.3%), energy (-0.3%) and telcos (-3.3%) retreated, with the latter drag down by Telstra going ex-dividend. • Europe - European shares were mixed overnight with some periphery markets continuing to rally behind the Draghi put. Stocks opened flat or down, but built momentum throughout the session and at the close the market had returned to positive territory. There was only third tier economic data all of which came in below expectation, but market in this region are now in the mind set that bad economic news is good market news and prices rallied as a result with solid gains among industrials and consumer discretionary stocks. By the closing bell, the EuroStoxx Index was slightly higher (+0.1%) with gains also in telcos (+0.7%) and travel and leisure (+0.7%), whereas chemicals (-0.4%) lagged. Among the major markets, gains were recorded in the UK (+0.1%) and France (+0.04%), whereas Germany declined (-0.2%). In the periphery markets performance was mixed with gains in Portugal (+2.0%), Italy (+0.6%), Ireland (+0.6%), Spain (+0.1%) and Greece (+0.01%). • US - on Wall Street, US equities finished Wednesday little changed in a day of very quiet trading with a lack of macro data and meaningful corporate news culminating in indices drifted all session long. Amid the news vacuum ahead of the long Labor Day weekend, the ECB remained the only high-profile topic for the market, but the recent price surge seems to have reached an exhaustion point.The crisis in Ukraine continued to get some market headlines on the wire services, although headlines remained volatile and their market influence was minimal. As such, by the close the Dow Jones Industrial Average was up +15 points (+0.1% to 17,122) with the S&P 500 (steady at 2,000) and the NASDAQ (-0.02% to 4,570) also posting minute movements as six sectors closed higher led by utilities (+0.9%), telcos (+0.5%) and consumer discretionary (+0.1%), with energy (-0.1%) and financials (-0.2%) the only noteworthy declines. Yesterday's economic news • Australia/Asia - Total real construction work done in Australia (both private and public) was weaker than expected in the June quarter (-1.2% q/q) and was below consensus estimates (-0.3% q/q) and the March result (-0.4% q/q). The weakness was concentrated in the public sector activity, which declined sharply for a second consecutive quarter (-6.4% q/q in June after -5.3% q/q in March), whereas private activity was flat. The data provided a timely reminder of the large and opposing forces that are currently at work in the economy. The RBA's easing campaign is gaining traction with residential construction work done up by +2.2% q/q in June and non-residential activity up +2.8% q/q, with both building on gains earlier in the year. However, the downturn in mining investment now has considerable momentum, with the data showing private engineering recorded its third consecutive decline (-2.1% q/q) in work done in the quarter, following similar declines in March 2014 and December 2013. In the end, the data was weaker than expected and confirms the less positive forward guidance issued by Downer EDI, WorleyParsons, Monodelphous and Bradken Limited in the current reporting season and it appears that we are heading for GDP growth of around +0.2% in the June quarter, which is somewhat underwhelming considering we are yet to resolve the Budget issues for FY15. • Europe - German consumer confidence (8.6 relative to street estimates of 9.0 and the July result of 9.0) and French business confidence (96, 96 and 97) both dipped slightly in August and came in just below consensus forecasts. However, in Italy the confidence decline was steeper than expected (101.9, 104.0 and 104.4) and represents the lowest result since March in a sign that the 11th growth contraction in the past 12 quarters has weighed on sentiment and could continue to impinge consumer spending in the period ahead. • US - no major releases. Today's major data releases Australia/Asia • Economics - no major releases. • Equities - Qantas, Nine Entertainment, Adelaide Brighton, Billabong, Noni B, Perpetual and Ramsay Health Care announce their earnings results. Europe/US • Europe - no major releases. • US - no major releases. What is the key investment message overnight? It seems that markets cannot get enough of regional central banks and their stimulus drug and when one supplier says there is no more, they look around for someone else to provide the supply. As such, US sharemarkets are at all-time highs and European debt is at all time lows. Indeed, at one point overnight, the yield on Germany’s 10-year bund traded through 0.9%, while yields on paper with maturities of one to three years were all negative. The ECB next meets on September 4 and market expectations are building about a stronger policy response, however, it may be the case that the ECB will want to see more data before initiating an historic program, even though they have appointed Blackrock overnight to advise on a program of asset-backed security purchases. However, this is unlikely to achieve much as the Euro yields are already extremely low due to deflation fears and, as Japan is finding out a lower currency does not spark an increase in export demand (this occurs when growth in export partner economy's increases). However, it will be good for financial markets as lower rates are likely to spark a switch from overpriced bonds into higher yielding equities, even though earnings downgrades in Europe appear to be a sure thing considering how weak the 2014 recovery has been. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-27 23:05:05 GMT

While You Were Sleeping - 28 Aug 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… There was little economic news on the calendar Wednesday, so traders instead eyed the latest corporate news and high-profile deals. U.S. stocks drifted around unchanged levels Wednesday afternoon, pausing after the S&P 500 index closed above 2000 for the first time. The Dow Jones Industrial Average tacked on 15 points to 17122. The S&P 500 index slipped less than one point to close to 2000 once more, and the Nasdaq Composite Index edged up one point to 4570. The Dow Industrials has gained 3.2% and the S&P 500 is up 8.2% for the year, through Tuesday's close. European stocks were mixed, with the Stoxx Europe 600 edging up less than one point to 343. The FTSE 100 gained eight points to 6831. The German DAX lost 19 points to 9570. The French CAC 40 increased two points to 4395. Alibaba Group Holding, which is expected to go public in New York as early as next month, reported a 46 per cent jump in quarterly revenue as growth in the world’s largest e-commerce market shows no signs of slowing. The US Treasury Department auctioned $35 billion in 5-year notes with a yield of 1.646%. Demand for the notes reached the highest level since the March auction, with $2.81 in bids for every $1 of bonds being sold. Some bond investors noted that the Fed is in play, so it’s best to be out the curve a bit in the seven- to 10-year sector, as long as there are no hiccups with inflation. Price moves... US Treasury yields continued to decline Wednesday following the collapse of yields in Europe prompted investors to reach for higher-yielding US government bonds and a strong auction of US five-year Treasury notes. The US 5-year note yield traded at 1.6400% Wednesday, down from 1.6614% late Tuesday. The US 10-year bond reached yield fell to a fresh low of 2.3680% Wednesday, down from 3.1639% late Tuesday. Yields on US 30-year bonds dropped five basis points to 3.11%. US two-year note yields rose two basis points to 0.52%, narrowing the difference, or spread, between two- and 10-year yields to the least in more than a year. The yields on German, Italian and Spanish bonds have hit record lows as investors continue to pile into the bond market. The German 10-year bund yield reached a new low below 0.91% Wednesday, down from 0.9397% late Tuesday. The Spanish 10-year bono traded at 2.1450% Wednesday, from 2.1857 late Tuesday. The Italian 10-year traded at 2.3850%, from 2.4032% late Tuesday. Gold futures closed lower Wednesday as lingering worries about higher interest rates in the U.S. overshadowed support from ongoing geopolitical tensions. Gold for December delivery, the most active contract, fell $1.80, or 0.1%, to settle at $1,283.40 a troy ounce. U.S. oil prices wavered Wednesday after a weekly inventory report showed a larger-than-expected drop in oil supplies but a fourth weekly stockpile build at a key storage hub in Oklahoma. Light, sweet crude for October delivery wobbled between gains and losses before settling up 2 cents at $93.88 a barrel. Brent rose 22 cents, or 0.2%, to $102.72. This morning, the Australian dollar is trading at 93.35 cents, compared with 93.32 cents at Wednesday’s local close. The US Dollar Index was slightly down less than one point or 0.27% to 82.45. The euro rose from its lowest in almost a year as speculation cooled that that the European Central Bank will add further monetary stimulus when it meets next week. The euro strengthened against the US dollar to $1.3194 whilst the US dollar weakened to 103.90 yen. Sterling was at 1.6577 against US dollar. The Australian dollar is trading at 93.35¢, compared with US93.32¢ at Wednesday’s local close.

Published on 2014-08-27 22:58:50 GMT

While You Were Sleeping - 27 Aug 2014 by RIMsec Specialists is Regular Income Markets Overnight markets… U.S. stocks extended gains Tuesday, fuelled by merger news and positive economic data on consumer confidence. The S&P 500 rose 0.11%, to 2000, the first time for the index. The Dow Jones Industrial Average briefly pushed into record territory, hitting a fresh intra-day high of 17154 earlier in the session. The Nasdaq Composite Index added 0.29%, to 4571. The Stoxx Europe 600 Index rose 0.73%, the FTSE 100 closed today's session up 0.70%, Germany's DAX ended higher by 0.82% and the French CAC 40 closed up 1.18%. A report showing an increase in optimism among U.S. consumers was released. Consumer confidence rose in August by more than expected, with the Conference Board's index rising to 92.4 from a revised 90.3 in July. That is the highest level since October 2007. Orders for durable goods, or big-ticket manufactured items, surged 22.6% to $300.1 billion in July from the prior month. Excluding transportation, which drove most of the increase, orders fell 0.8% in the period. Economists had expected an overall rise in orders of 7.5% last month. A gauge of home prices in 10 major U.S. cities increased 8.1% in the year ended in June, down from the 9.4% yearly rate in May, according to data from S&P/Case-Shiller. Economists had expected a gain of 8.2%. The US sold $29 billion of two-year notes at close to the highest yield in three years, less than a week after Federal Reserve Chair Janet Yellen said interest-rate increases may come sooner than forecast. The securities drew a yield of 0.530 percent, compared with a forecast of 0.533 percent in a Bloomberg News survey of five primary dealers. The notes attracted a high yield of 0.544 percent in July, the most since May 2011. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of debt offered, was 3.48 the strongest since May, versus an average of 3.4 at the past 10 sales. “With the recent cheapening in the front-end, investors are selling the long-end and buying shorter-term securities with the expectation that the auctions will go well,” said Jason Rogan, managing director of U.S. government trading at Guggenheim Securities LLC, a New York-based brokerage for institutional investors. “With rates so low in Europe and the FOMC in effect offering higher yields, the trade is drawing people in.” Price moves... The current US two-year note maturing July 2016 was little changed at 0.50%. Yields on benchmark US 10-year notes rose one basis point to 2.39%. Thirty-year bond yields increased two basis points to 3.15%. European bond yields have fallen on expectations of more stimulus from the European Central Bank. Spanish 10-year yields dropped seven basis points or 0.08% to 2.18%, after reaching 2.166%, the lowest at least 1993. Italian 10-year yields fell five basis points to 2.43% - the least on record. Benchmark German 10-year bunds were little changed at 0.95%, close to the record low set yesterday. Gold for December delivery, the most actively traded contract, rose $6.30, or 0.5%, in price to $1,285.20 an ounce. Prices had been up as much as $13 earlier in the session but slipped as the day wore on. US crude-oil prices ticked higher Tuesday on expectations that supplies of crude oil and petroleum products fell last week. Light, sweet oil for October delivery rose 51 cents, or 0.6%, to $93.86 a barrel. Brent fell 15 cents, or 0.2%, to $102.50 a barrel. The US Dollar Index gained less than one point or 0.07% to 82.65. The euro slid to new lows for the year against the US dollar Tuesday as investors anticipated inflation data for the euro zone that could spur central bankers to take action. The euro slipped 0.1% to $1.3177. Sterling fell 0.2%, to $1.6546 against the US dollar, while the greenback ended flat versus the yen, at 104.06. The Australian dollar is trading at 93.05 cents early this morning compared with 92.94 cents at Tuesday’s local close.

Published on 2014-08-26 23:23:55 GMT

What is the key investment message overnight? The US share-market surge shows no sign of ending and why should it. The US economy is progressively strengthening, earnings expectations are not challenging, valuations are at average levels, buybacks are continuing and the US Fed will maintain its highly supportive monetary policy, even when rates go up. Unless US Inflation surges or bank credit accelerates, the US Fed is likely to do only a couple of rate hikes in 2015, after which they will wait to see how the economy transitions, before additional rate hikes in 2016. This means US rates are set to remain extremely low for another two years at least, and indeed if rates peak around 2% as I suspect this cycle, they will remain constructive for the US share-market. The Key for investors is maintaining vigilance on valuations and not paying too much for any income stream. On this front, valuations are at historic averages and bull markets don't end at average valuations, but in a rapidly rising market investors can easily change their focus from rising earnings to rising share prices and this is the stage of the cycle where investors can lose the most money by over-paying for low quality companies. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-26 23:21:48 GMT

THE SHERWOOD OVERNIGHT UPDATE REPORT - 27th August 2014 The US S&P 500 closes above 2,000 for the first time. Summary • The US S&P 500 closed above 2,000 level for the first time in history overnight as the US market ground higher in a day which lacked new developments on the corporate front and easing geopolitical risks dominated market trends. US economic data was mixed overnight, but M&A activity continued to support market prices, but in Europe prices rose strongly for a second consecutive day as tensions between the Ukraine and Russia eased and the lingering effect of Mario Draghi's weekend speech at Jackson Hole continued. By the closing bell, the MSCI World Index was higher (+0.4%) with a loss in Asia (-0.2%) outweighed by gains in the US (+0.1%) and Europe (+1.0%). • In other financial markets, 10-year government bond yields were mixed overnight with US treasuries up slightly, but the UK market was off seven basis points as the market there returned from holidays and caught up with Draghi's dovishness (US Treasuries up to 2.39%, UK gilts lower at 2.33% and Japanese bonds decreased to 0.495%), high beta currencies were mixed as the US dollar strengthened and the Australian currency rose on the cross rates (AUD +0.1% to 93.09 and the Euro -0.2% to 131.73 which is a fresh 11-month low) and commodities were mixed: • oil +0.5% to USD93.82 per barrel. • gold +0.3% to USD1,283.30 per troy ounce. • base metals were mixed (with lead, zinc and tin lower). • iron ore -0.1% to USD93.32 per metric tonne in US futures markets. • Dr copper -0.9% at USC318.80 per pound. • The SPI suggests that the Australian market will open +8 points higher (+0.2%) at 10am AEST. Market news • Asia - Asian markets traded broadly lower yesterday even though there were positive offshore leads from Europe and the US, and a distinct lack of any over-arching regional theme. Instead, there were several smaller drivers in respective local markets including an appreciation of the Yen, the corporate calendar in Hong Kong and legal decisions in Mumbai. Meanwhile, the usual worries sparked a major sell-down in Chinese markets, which was reinforced by the preparation of investors of several large IPOs later in the week. By the closing bell, the MSCI Asia Index was lower (-0.2%) with declines in China (-1.0%), Japan (-0.5%), Hong Kong (-0.4%), Singapore (-0.2%) and India (-0.04%), whereas Australia (+0.04%), Taiwan (+0.04%) and Korea (+0.4%) advanced. The local market was flat yesterday with the S&P/ASX 300 Index up +2 points (+0.04% to 5,581) with only three sectors closing higher led by healthcare (+0.7%), telcos (+0.5%) and financials (+0.2%), whereas IT(-0.2%), energy (-0.4%) and utilities (-0.5%) retreated • Europe - European share-markets rose strongly for a second consecutive session overnight as the positive impact of Mario Draghi's Jackson Hole speech lingered. The positive impact of speculation regarding additional policy support from the ECB was enhanced by Israel and Hamas agreeing to an open ended Egyptian-mediated agreement on Gaza, which is expected to simmer down tensions and ease geopolitical risks in the region. Meanwhile, the Presidents of the Ukraine and Russia met in Minsk to discuss the recent surge in tensions and how to calm things down. Elsewhere, macro data was in short supply overnight with Spain issuing debt at a record low, and corporate news was also kept to a minimum. As such by the closing bell, the EuroStoxx Index was higher (+1.0%) with gains in all markets and all sectors led by banks (+1.2%) and consumer discretionary (+1.1%). Among the major markets, advances were led by France (+1.2%), with Germany (+0.8%) and the UK (+0.7%) also moving higher. In the periphery markets performance was more upbeat with century gains in most markets led by Portugal (+1.7%), Greece (1.6%), Italy (+1.3%), Spain (+1.3%) and Ireland (+0.8%). • US - on Wall Street, US share indices finished higher, but off their best levels in an uneventful trading day. Trading was kept to a tight range with a lack of substantive drivers meaning indices lack thrust in either direction. Economic data was mixed with a strong surge in durable goods orders, but ex-transport it was down and housing price indices gave mixed readings, yet consumer confidence rose in August. Geopolitics was also largely relegated to the back-burner, but M&A remained in focus today with Burger King confirming a USD11 billion acquisition of Tim Hortons. By the closing bell, the Dow Jones Industrial Average closed up +29 points (+0.2% to 17,107) with the S&P 500 (+0.1% to 2,000) and the NASDAQ (+0.3% to 4,572) posing similar gains with seven sectors rising led by energy (+0.5%), healthcare (+0.4%) and financials (+0.3%), whereas industrials (-0.3%) and utilities (-1.1%) declined. Yesterday's economic news • Australia/Asia - no major releases. • Europe - no major releases. • US - It was a busy day on the US economic calendar with durable goods orders surging following a high number of aircraft orders. Indeed, orders rose a record +22.6% m/m in July, underpinned by a 318% surge in non-defence aircraft orders. Ex-transportation, orders were down -0.8%, which was below consensus of a +0.4% increase. Core capital goods orders fell -0.5%, while the Street was looking for a +0.2% increase, but shipments of these goods rose a better-than-expected +1.5% with upward revisions to the June result, which is positive for Q2 and Q3 US GDP growth. Meanwhile, US consumer confidence improved to 92.4 in August from 90.3 in July, which is the highest level in nearly 7 years, with improvements in the current situation index rather than the expectations component. Elsewhere, house price data was mixed with the Case-Shiller 20-city composite index down -0.2% m/m in June, while the FHFA house price index rose +0.4%. Major data releases Australia/Asia • Economics - June quarter construction work (Mar qtr: +0.3% q/q). • Equities - Seven Network owner Seven West, Westfield, Flight Centre, Lend Lease, Prime Media and WorleyParsons are among companies issuing earnings reports. Europe/US • Europe - August France consumer confidence (July: 93) and August Italy consumer confidence ( July: 104.6). • US - No major releases. What is the key investment message overnight? The US share-market surge shows no sign of ending and why should it. The US economy is progressively strengthening, earnings expectations are not challenging, valuations are at average levels, buybacks are continuing and the US Fed will maintain its highly supportive monetary policy, even when rates go up. Unless US Inflation surges or bank credit accelerates, the US Fed is likely to do only a couple of rate hikes in 2015, after which they will wait to see how the economy transitions, before additional rate hikes in 2016. This means US rates are set to remain extremely low for another two years at least, and indeed if rates peak around 2% as I suspect this cycle, they will remain constructive for the US share-market. The Key for investors is maintaining vigilance on valuations and not paying too much for any income stream. On this front, valuations are at historic averages and bull markets don't end at average valuations, but in a rapidly rising market investors can easily change their focus from rising earnings to rising share prices and this is the stage of the cycle where investors can lose the most money by over-paying for low quality companies. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-26 23:20:56 GMT

What is the key investment message overnight? The market reaction to Mario Draghi's Jackson Hole speech was certainly over the top, mind you desperate investors will cling to any hope. The key message from the ECB chief was that the very weak European labour market will only be fixed by reforms to demand (monetary and fiscal policy) and also supply via structural reforms (involving the deregulation of the industrial relations system, which is heavily unionised). His reforms of the demand side was an interesting point as for the past three years he has been stating the opposite and telling governments to live within their means, but now he says that they should loosen the fiscal reins. He also finally conceded that inflationary expectations had declined significantly. The forex markets interpreted this as a green light for a regional QE, but it can only be limited to asset-backed bonds and as Japan is finding out, a lower currency from a QE program does not mean higher exports volumes as export demand is driven by export partner growth, not the value of your exchange rate. Meanwhile, investors should ask what will a QE achieve? Yields are already at 200-year lows in France, Italy, Spain and Germany despite their very high debt and one would argue that there is no compensation for credit risk in many of these markets. Indeed, many central banks are realising that lifting inflation without a credit multiplier is not that easy and the key is making sure that it is the right sort of inflation - that is, inflation from producers which lifts profits, wages and eases debt burdens, rather than inflation from a lower currency which crimps demand and lowers household spending power. The former is what each country should aim for, but the latter appears to be what they are getting. Regards, Matt Sherwood Head of Investment Markets Research

Published on 2014-08-25 23:06:23 GMT

Generated summary (experimental)

FUNDS UNDER MANAGEMENT My retirement savings are in good hands
     Brisbane Money Management has given me the confidence knowing that my retirement savings are in good hands and will span for the length of my retirement.
BMM understood my concerns about risky assets following the Global Financial Crisis, and have tailored my portfolio with this in mind, specific to my needs.
The level of communication from Geoff and his team provide me with the confidence that I know what my investments are doing, and why they are doing it.
Knowing that BMM have my finances under control has enabled me to enjoy my golf more, and I’d say even improved my handicap!
A focus on doing the right thing by their clients...
     I have known Geoff and Brisbane Money Management for more than 5 years, perhaps as long as 10.
I meet Geoff and Tristan, the other adviser at the firm, regularly at industry, insurance company and fund manager functions and have visited both offices.
BMM is a business that is built around a focus on doing the right thing by their clients.
I have no hesitation in recommending Geoff, Tristan and BMM to anyone who is seeking tailored, personalised financial advice.
– Michael Reid (Managing Director, Thistle Insurance Services)
Geoff has recently finished writing his book!
Business and personal insurance, talk to BMM today about securing your professional future and your family life.
Deciding what and where to invest your money can be a long and stressful process, let BMM guide you through.
Navigating your way through the ever changing world of Aged Care, and how to best fund it!
Your adviser at BMM will work through your needs and give you advice on how to make the most of your superannuation.