Corporate cost cutting remains a focus as broad based growth remains elusive

James Marlay

Livewire Markets

Corporate cost cutting remains a focus as broad based growth remains elusive. Some interesting comments coming out of the Commonwealth Bank's annual Australasian Conference regarding the sluggish transition away from mining in the economy. Aside from the housing sector and increased export volumes of commodities (i.e. iron ore) there are limited drivers of growth in the economy. This quote from CBA's director of equity strategy Tim Rocks says a lot about the mind set of many businesses: If you sit through a company presentation, or a company strategy day, these days, it's all about cost-cutting and not about how you capture the growth outlook. So, we actually tallied up and found that about half the listed companies that we cover are in the middle of aggressive cost-cutting campaigns...Corporate -Australia is not going to lead this recovery; they may respond to it when they see it, but their mindset is not one where they are actually even just looking for those opportunities. Further coverage is in the AFR (paywall): (VIEW LINK)


MORE ON



Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.