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.
ASX weakness on earnings, Woolies CEO to step down, CSR in European takeover bid
Both Australian benchmarks fell 0.7 per cent on Wednesday, as weakness in the consumer staples sector, which fell 4.3 per cent, offset gains in technology, which added 2.2 per cent. Woolworths (ASX:WOW) fell 6.6 per cent after the company announced the departure of long time CEO Brad Banducci after a TV outburst, with the company posted profit growth of just 2.5 per cent on 4.4 per cent higher revenue. The company is among many hit by higher staff costs, with today’s wage price index showing annual growth of 4.2 per cent. Shares in National Australia Bank (ASX:NAB) were broadly flat, even after the company reported a 16 per cent fall in earnings, amid growing arrears and risks of default within its loan book. The outgoing CEO suggested profit was just 3 per cent lower than the prior period, but that higher tax rates had hit the bottom line. Shares in building materials group CSR (ASX:CSR) popped by 17 per cent after the company received a takeover offer from French giant Sant-Gobain valuing the business at $4.3 billion.
WiseTech surges on upgrade, Scentre hit by billion dollar writedown, Rio profit at five year low
Tech and software darling WiseTech (ASX:WST) saw shares surge by 11.2 per cent after the company posted a stronger than expected 5 per cent increase in profit to $118.2 million, which supported a 17 per cent increase in the dividend. Most importantly, the group confirmed guidance for the remainder of the financial year, as the freight software provider was buoyed by a 32 per cent jump in sales amid growing adoption of its key products. Westfield owner Scentre (ASX:SCG) rose by close to 3 per cent despite the company reported a $1 billion devaluation of its shopping centre assets, suggesting the worst may be over. Profit fell to $174 million, however, rental and cash flow income increased by close to 5 per cent as inflation was passed onto tenants. Shares in Rio Tinto (ASX:RIO) were 1.8 per cent lower as iron ore prices fell and the company posted a five year low in profits, down to $15.3 billion.
Dow, S&P500 trade sideways ahead of NVIDIA earnings, Palo Alto sinks
All three US benchmarks were broadly flat on Wednesday, as traders wait with baited breath for the all important NVIDIA (NYSE:NVDA) earnings result, which is due after the market closes. After booming to become one of the biggest companies in the world, the chip maker now threatens the positive momentum in markets with a single earnings result. Members of the Fed have put pause to short-term rate cuts, suggesting that pushing inflation down that final 1 per cent will be harder than many expect. Shares in cyber security software provider Palo Alto Networks (NYSE:PANW) dropped by close to a third after the company delivered a weak outlook for 2024. Management indicated they would be giving away a number of basic products in order to stimulate demand for their mega deal software, which will have an impact on short-term revenue growth.
