Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Woolies sees inflation impact, Perpetual rejects new bid, AUB lifts guidance
Shares in Woolworths (ASX:WOW) neared a one year low, falling 3.5 per cent, after the company delivered another quarterly update. While the headline numbers were solid, with sales up 1.8 per cent to $16.36 billion, concern was raised about the impact of food price inflation of 7.3 per cent in Australia, and whether this will impact on consumer taste. Online sales fell 14.5 per cent as lockdowns cycled out of the quarterly results, and the sector returns to some level of normality. The highlight, by far, was the performance of Perpetual (ASX:PPT), with the fund manager gaining 7.1 per cent on news that BPEA Private Equity and Regal Partners had joined together to bid $30 per share for the company, totalling $1.74 billion. The board quickly rejected the offer due to concerns it carried too many conditions. Shares in prior suitor Pendal (ASX:PDL) fell 10.7 per cent on the news. Shares in insurance broker AUB Group (ASX:AUB) gained 0.2 per cent, outperforming after the company lifted expectations for full year net profit on strong demand.
US markets weaker, rate expectations increase, Zillow, Qualcomm report
All three US benchmarks finished lower ahead of more payroll data as investors digested further commentary from Jerome Powell. The 75 basis point rate hike was followed by commentary that suggested the cash rate may need to reach the same level as core inflation, or around 5 per cent, to have any real impact on the economy. Once again, this brings into question the cost of job losses and recession. The Dow Jones fell 0.5, the S&P500 1.1 per cent and the Nasdaq 1.7 per cent. Shares in apparel maker Under Armour (NYSE:UAA) jumped more than 10 per cent after topping expectations but reducing sales expectations for the final quarter. Shares in struggled property platform Zillow (NYSE:Z) also gained more than 10 per cent after the company delivered revenue growth 5 per cent ahead of estimates. Chip maker Qualcomm (NYSE:QCOM) which has been caught up in Chinese lockdowns fell 6 per cent after the company downgraded its earnings forecast due to a growing glut of smartphone chips.
