The wrap from Melbourne

Senior Equities Analyst Matt Haupt and Equities Analyst Tobias Yao were in Melbourne last, meeting nine companies over two days. The resounding view from the visits was that the current economy is tough, with no visible signs of an uplift. The lack of consumer confidence was the reason given for the underwhelming response to the interest rate cuts. Another key theme was how the depreciation of the Australian dollar will impact companies when hedges start to roll off. This information is useful for our analysis of future year profitability as it remains a significant headwind for some companies.