A long anticipated royal commission, Commonwealth Bank of Australia (CBA) tripping over multiple banana skins and Australia and New Zealand Banking Group (ANZ) shrinking to greatness are all areas of interest in banks starting the year. Show More
During the 2016 December quarter, we witnessed the value style stage a partial recovery after having underperformed for at least two years or so. And then in the recent reporting season, the market started to adjust its earnings expectations to reflect the emerging signs of economic growth. Is this as... Show More
China started 2017 with real momentum, following the property driven debt-fuelled stimulus of last year, and the blue skies a result of Government directives to curb pollution during March’s Central Government meetings. However, with an expectation of lower steel intensity sectors driving growth this year, what will this mean for... Show More
The outlook for US construction looks positive, with housing continuing to move back towards mid-cycle levels, and commercial activity potentially increasing as business sentiment improves. There also appears to be a greater degree of certainty around infrastructure investment than there has been for some time. With finance headwinds having long... Show More
As commodity prices have risen, the Australian economy is set to benefit from these continuing gains. Australia’s improving terms of trade has led to a big increase in nominal GDP, which is now growing at 6.1% year-on-year. As commodity prices have moved higher in the first half of 2017, this... Show More
This year’s reporting season was brutal, with many market darlings confessing to their sins. Some 45% of ASX 200 companies beat their EPS estimates, while 33% missed, the highest since the GFC. The Australian market has seen quite a large rotation away from defensive and bond-sensitive stocks, towards the cyclical... Show More
While China is clearly of great importance to the Australian economy, it may be tempting to downplay, or even overlook, the impact that President Trump’s agenda will have on Australia. Show More
Our recent research trip to Las Vegas found that the US gaming market remains in good shape, with gross gaming revenue at casinos growing at around 2-3% pa, which is within our expectations. Show More
Construction is booming in New Zealand, supported by a reasonable economy, strong net migration, tight supply and low interest rates. Show More
Following the US election, we have seen bond rates continuing to increase, a stronger US dollar, firmer commodity prices, and a US stock market at all-time highs. Show More
Brad Potter, Head of Australian Equities at Nikko AM Australia recently visited China, primarily to find out what has been driving recent increases in iron ore and coal prices and whether they can be sustained. It appears that supply side reforms are taking place in the materials sector and there... Show More
I recently visited the UK to learn more about the UK economy, in particular UK retailers, and to see if the UK market held any lessons for Australian businesses. Show More
I recently visited Perth to speak with some iron ore miners, before heading north to visit Fortescue Metals Group’s Solomon mining hub and Port Hedland infrastructure. Show More