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.
RBA keeps rates on hold (finally), ASX (ASX:XJO) gains, Costa bid confirmed
News that the Reserve Bank of Australia had decided to pause the most aggressive period of rate hikes in recent memory saw both the All Ordinaries (ASX:XAO) and S&P/ASX200 (ASX:XJO) surge to a 0.5 per cent gain on Tuesday. This strong start to the new financial year was powered by the financials and property sectors, which gained 1 and 1.1 per cent respectively. The property sector was lead by the likes of Mirvac (ASX:MGR) and Dexus (ASX:DXS) which added 2.2 and 1.1 per cent on hopes that the hit to valuations may be limited. Yet all eyes were on vertically integrated agricultural company Costa Group (ASX:CGC) which gained 12.1 per cent after confirming the receipt of a formal takeover bid from Pain Schwartz Partners to acquire the company for $3.50 per share. The deal is a 34 per cent premium to the prior price and will include the payment of the interim dividend.
Wage growth ticks up, Silverlake affirms production, Suncorp premiums increase
News that Russia and Saudi Arabia had decided to cut production nearly beat the RBA’s hold decision in terms of headlines, with the result seeing the energy sector top the market, up 1.2 per cent. Both countries are seeking to stabilise prices following a period of weakness due to US and global recessionary concerns. Pay rises for workers continue to grow and draw the ire of the central bank as they seek to cut spending, with the largest jump in 11 years in enterprise bargaining agreements, seeing an annual pay rise of 3.7 per cent delivered. Shares in gold miner Silverlake (ASX:SLR) gained 5.8 per cent after the company confirmed prior sales and production guidance and a significant increase in cash on hand. Suncorp (ASX:SUN) faces the unique challenge of insurance companies, with the group noting that reinsurance premiums, through which they offset their policy claims, will likely be increased by more than $250 million or 12 per cent in 2024, placing more pressure on premium hikes.
