ANZ announce sub prime exposure Yeh exchange rates back up maybe?
#1
BE Enthusiast
Thread Starter
Joined: Jan 2006
Location: Living in Melbourne and loving it!
Posts: 837
ANZ announce sub prime exposure Yeh exchange rates back up maybe?
ANZ shock puts shares into tailspin
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
#2
BE Enthusiast
Thread Starter
Joined: Jan 2006
Location: Living in Melbourne and loving it!
Posts: 837
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
ANZ shock puts shares into tailspin
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
The interest rates dilemma — the risk that lifting rates to fight inflation could tip the economy into recession — has also been highlighted by a survey revealing high levels of anxiety among Australians with mortgages.
The survey, carried out for London-based business information company Datamonitor, found 24% of households with mortgages expected it would be "quite hard" or "very hard" to keep up repayments in the next five years. "Australians are feeling increasingly pressured about housing affordability issues," said Datamonitor's Australian financial services analyst, Petter Ingemarsson.
Confirming estimates by the housing industry, the survey of 2000 people across all states also found that 24% of home owners were already reporting financial stress in keeping up repayments.
It found that 15% of households with mortgages had paid no deposit on their main mortgage, while a further 8% had put up less than 5% of the sale price, and borrowed the rest.
#3
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
Ouch, 1 GBP = 2.1357 AUD - clearly not happening yet
#4
BE Enthusiast
Thread Starter
Joined: Jan 2006
Location: Living in Melbourne and loving it!
Posts: 837
#5
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
ANZ shock puts shares into tailspin
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
#6
Lost in BE Cyberspace
Joined: May 2006
Posts: 6,600
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
It's just been announced that Japanese steel mills have negotiated a 65% increase in the iron-ore price and that Rio are going to push for even more than that - this is on top of already record prices. Looks like the good times for WA, and therefore Australia, are going to keep on rolling.
Currently at 2.1242 (0.4708) and thats the interbank rate. Ozforex are offering somewhere around the 2.10 mark for actual transfers.
Also remember the UK is a predominantly finance / service based economy, where as in Oz they tend to dig things up.
Last edited by spartacus; Feb 18th 2008 at 11:33 pm. Reason: Also remember the UK is a predominantly finance / service based economy
#7
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
If by good times you mean state government coffers and people actually in the mining industry, yes. For everyone else it just means more expensive food, bills, rent etc...
#8
BE Enthusiast
Joined: Sep 2004
Location: London - but only until I can afford to move back to Sydney
Posts: 938
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
ANZ shock puts shares into tailspin
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
Email Printer friendly version Normal font Large font Marc Moncrief and Tim Colebatch
February 19, 2008
Page 1 of 2 | Single page
Advertisement
AUSTRALIA'S third biggest bank, ANZ, has revealed a potentially costly exposure to the US financial crisis, triggering a sell-off of banking shares and adding to concerns about the vulnerability of the economy to global turmoil.
Days after Commonwealth Bank revealed unexpected bad debt problems, ANZ shocked the market yesterday by saying it would withhold $367 million from its next profit to cover potential bad debts — including its exposure to a US insurer.
Delivering the profit warning, ANZ chief executive Mike Smith said the world was experiencing a "financial services bloodbath".
The news sent local bank shares into a spiral, with more than $2 billion wiped from the market value of ANZ as its price plunged more than 6%.
Share prices of the other big banks — Commonwealth, NAB and Westpac — were also battered by the ANZ shock.
With this, the latest case of fallout from the US subprime crisis, the complications for the Reserve Bank will be magnified as it considers whether to raise interest rates again next month.
See the rest of report on The Age website
HERE WE GO HERE WE GO HERE WE GO,exchange rates must reflect that Oz is no different to the UK, we must be heading back up soon?
PLease please
Yes but the British banks are due to start reporting profits soon and I doubt the news that they have will be good. In fact I imagine they have much greater exposure to the sub prime problems both in the UK and the US.
#9
BE Forum Addict
Joined: Oct 2005
Location: Perth
Posts: 3,453
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
I think any turbulence in the banking sector is going to be offset by gains in mining. It's just been announced that Japanese steel mills have negotiated a 65% increase in the iron-ore price and that Rio are going to push for even more than that - this is on top of already record prices. Looks like the good times for WA, and therefore Australia, are going to keep on rolling.
Dollar won't weaken until markets see that rates are on their way down and heading for parity with competing money accounts abroad. Probably at least 12 - 18 months away.
#10
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
I partly agree with you. WA gov. has too much money and really needs to cut taxes and people in mining are going to gain. But this boom filters into the rest of the economy. Retail, housing and services benefit - as does the rest of the country. If the opposite was happening then even less people would benefit. Some gov. and state employees would be okay but that would be it.
#11
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
I would rather have a boom than a recession.
#12
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
I partly agree with you. WA gov. has too much money and really needs to cut taxes and people in mining are going to gain. But this boom filters into the rest of the economy. Retail, housing and services benefit - as does the rest of the country. If the opposite was happening then even less people would benefit. Some gov. and state employees would be okay but that would be it.
#14
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
The people who actually build them - bricklayers, carpenters, sparkies etc, half the people on this website for instance - benefit. In Australia, housing is a large part of the economy so when this industry goes into a downturn it's going to hurt a lot of people.
#15
Re: ANZ announce sub prime exposure Yeh exchange rates back up maybe?
I hear what you are saying. I do sympathise with anyone in the trade though, certainly tougher times at the moment in WA.