Job Losses
Nov 19th 2008, 11:31 am
#91
Joined: Jun 2006
Posts: 4,555
Re: Job Losses
Mac Banks decision is due to the lack of profit to be made in residential and commercial property lending. Mac Bank's redundancies reflect what I am saying about the upper end of the market and seeing in Sydney's high end property. Now that building is hit tradies are being laid off and that will hit the middle market.
Nov 19th 2008, 7:57 pm
#96
Guest
Posts: n/a
Re: Job Losses
Car giant Ford has reversed a decision to close its Geelong engine plant, saving 400 jobs and giving hope to Australia's embattled automotive industry.
Nov 19th 2008, 8:13 pm
#97
Joined: Jun 2006
Posts: 4,555
Re: Job Losses
An interesting statement by the CEO today. His words were "the market for long term credit is dead. The only time I remember that happening was post September 11 and that was for only a week."
Right now companies are reluctantly starting to get their finance off the stock market instead but they are doing so with discounted prices. Word is that will only be possible for a while and for those not too highly geared.
Nov 19th 2008, 8:14 pm
#98
Joined: Jun 2006
Posts: 4,555
Re: Job Losses
Thats a big one for Vic, especially the parts suppliers depending on the plant. I wonder how much that cost the taxpayers.
Nov 19th 2008, 8:22 pm
#99
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Posts: n/a
Re: Job Losses
Not sure the Reserve Bank governor is classed as a politician though ?, he has been an employee of the Reserve Bank of Australia since 1980.
His comments:
http://www.news.com.au/heraldsun/sto...10-664,00.html
His comments:
"Given that we have the scope, and given the underlying strength of the economy, about the biggest mistake we could make would be to talk ourselves into unnecessary economic weakness," Mr Stevens told the audience of senior business executives.
"Yes, the situation is serious. But, the long-term prospects for the Australian economy have not deteriorated to the extent that might be suggested by the extent of some of the gloomy talk that is around."
"Yes, the situation is serious. But, the long-term prospects for the Australian economy have not deteriorated to the extent that might be suggested by the extent of some of the gloomy talk that is around."
Nov 19th 2008, 8:24 pm
#100
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Posts: n/a
Re: Job Losses
Nov 19th 2008, 8:37 pm
#101
Joined: Jun 2006
Posts: 4,555
Re: Job Losses
Not sure the Reserve Bank governor is classed as a politician though ?, he has been an employee of the Reserve Bank of Australia since 1980.
His comments:
http://www.news.com.au/heraldsun/sto...10-664,00.html
His comments:
http://www.news.com.au/heraldsun/sto...10-664,00.html
My point is that Australians cannot talk the credit markets into re-opening as they did not talk them into closing. Those in finance are telling me it won't be until mid next year when results start coming in and that some sort of predictability will come back to the markets. That may open the banks to lend to each other and possibly others.
Nov 19th 2008, 8:54 pm
#102
Guest
Posts: n/a
Re: Job Losses
True he is a bureacrat and no one in that position should talk down the economy.
My point is that Australians cannot talk the credit markets into re-opening as they did not talk them into closing. Those in finance are telling me it won't be until mid next year when results start coming in and that some sort of predictability will come back to the markets. That may open the banks to lend to each other and possibly others.
My point is that Australians cannot talk the credit markets into re-opening as they did not talk them into closing. Those in finance are telling me it won't be until mid next year when results start coming in and that some sort of predictability will come back to the markets. That may open the banks to lend to each other and possibly others.
After all, for some time now, all we have heard is doom and gloom, and it came...
Nov 20th 2008, 7:52 am
#103
Joined: Jun 2006
Posts: 4,555
Re: Job Losses
But if they all talk positively, instead of negatively, maybe some companies will also feel positive, and not cut jobs (eg Ford), and the whole thing could spiral upwards instead of the downwards that we have been talked into for a while now.
After all, for some time now, all we have heard is doom and gloom, and it came...
After all, for some time now, all we have heard is doom and gloom, and it came...
As you know cash is king and that is what is scarce. Well run companies which are making profits and have good forecasts are having to preserve cash because they cannot access debt markets that were running prior to Lehmans collapse. The way they preserve cash is to analyse where it is leaking which leads to the knock on effect. This leads on to companies having to cut forecasts because they know their customers are cutting back spending. Any well run company has a responsibility to maintain cashflow and forecast to current market conditions. Currently the market is hoarding cash and that is what forecasts and business strategies have to work around. Not doing so is financial suicide and no provider of cash will look at an unrealistic company.
Well run companies will be able to return to the ASX and get money but they have to give investors a steep discount. Some are saying the market can only fulfill so many capital raisings. Badly run highly geared companies and private equity firms will struggle.
With Ford you have to remember that is not currently financially viable in its current form without further welfare payments from the government. Australian car sales are down 10%. Ford and Holden sales are down even more.
That 6 billion is something us taxpayers will have to pay for.
Nov 20th 2008, 1:39 pm
#104
Born to be wild....
Joined: Mar 2005
Location: Northants to Brisbane.
Posts: 5,450
Re: Job Losses
Volvo trucks in Wacol Brisbane is axing over 130 positions prior to xmas this year.
This will have a large impact on suppliers also, so the knock on effect is a much higher number of redundancies.
This will have a large impact on suppliers also, so the knock on effect is a much higher number of redundancies.
Nov 20th 2008, 11:06 pm
#105
poole ,dorset . love it
Joined: Mar 2007
Posts: 1,281
Re: Job Losses
no point putting money into oil,shares,gold ,property ,the bank ,etc etc .Something has to give and i reckon once the shares have dropped as far as they can go ,they have dropped 50% now this year and may have more to drop yet but they arnt going to drop to zero ,i dont think we are far away from a slow recovery ,early in the new year in feb/march .
I am in construction and this slow down is a year old already ,it wont be long before it turns around here in australia and perth especially .
I am in construction and this slow down is a year old already ,it wont be long before it turns around here in australia and perth especially .
