27/11/2008

Although the media say they are only reporting the facts and it’s not their fault if there is so much bad news out there on the economy, one other fact that seems to get overlooked is that there is some very good news about if you take the time to look for it.

 

Let’s be a bit more balanced in our attitude to the current situation.  And let’s not talk ourselves into a recession.  Recessions shouldn’t be a status symbol – Australians shouldn’t be saying “It’s not fair – Europe and the US are having a recession, why can’t we?”

 

Here are some good news stories we’ve seen around recently.  The next time someone wants to spread gloom and doom tell them about one of these.  Howard Hughes made a fortune during the depression.  Slower economic times require a change in management and attitude and can still prove very worthwhile.  Opportunities are everywhere.

 

Australia’s Fundamentals Are Great

 

-  95.5 per cent of Australians who want a job have got a job.

-  Wages and working conditions have never been better.

-  The previous Government left us with a $20 billion surplus.  $10 billion of this is going to be pumped into the economy before Christmas.
-  Exports are still rising.
-  Interest rates have just been cut by a record one per cent and with a bit of luck they'll fall further.
-  The Chinese economy is still running with growth rates of 9 or 10 per cent.
-  Our banks are rock solid. The four big banks made profits of $20 billion in the last 12 months alone.

 

While China is Going Well So Will We

 

Prime Minister Kevin Rudd has described as "extraordinary" China's four trillion yuan ($A884 billion) economic stimulus package, saying it is good news for Australia.  The fiscal package will increase spending on agriculture, infrastructure and other sectors of the economy to ward off the global financial crisis.

  

Country Road is Doing Alright

 

Upmarket fashion chain Country Road has revealed that its sales are holding up despite consumer sentiment. The retailer revealed recently that total sales in the first 20 weeks of the financial year are up 17%. The company said sales in stand-alone retail stores are 12.6% up on last year and up 8.3% in comparable-store terms. Country Road’s department store sales are up 16.2% or 10.3% on a comparable store basis.

 

Problem with the Banks?  It’s News to Suncorp-Metway.

 

Suncorp-Metway has upgraded its banking profit forecast despite acknowledging an exposure to the storm damage inflicted on south-east Queensland.  The banking group’s chief executive officer, John Mulcahy, said the company was now forecasting full-year growth in banking profit before tax and bad debts in the high teens, up from its previous guidance of high single digit growth.  He said the banking business had made a strong start to the current financial year and was well-positioned in relation to its capital and funding requirements.

 

AXA are Sweet

 

AXA Asia Pacific (AXA APH) has announced assets of $724 million in excess of regulatory requirements at the end of October, following several initiatives to strengthen its capital ….

 

Andrew Penn, the chief executive of AXA APH, said: “Our focus has been on protecting ourselves to ensure we maintain excess capital on the one hand whilst ensuring that we remain well-positioned to benefit from the market recovery which will inevitably occur. We have the right strategies in place and we have implemented the right responses to the current market environment,” he added.

 

AXA also unveiled its Asia Ambition 2012 plan to double its enterprise value, annualised premium income, new business, and new business index over the next four years, by investing in its infrastructure and resources.