Good Morning and Happy Monday,
Well last week was a bit of an emotional roller-coaster ride, Holden deciding to pull out of Australia completely by 2021. In many ways the writing was on the wall for many years, though I think like many Australians we thought this day may never come.
Even though they flagged in 2013 they'd be gone by 2017. When you look at the business it rode for so many years on the coat tails of our nations heart... that will only ever pay the bills for so long.
In the end cost and cash flow is what kills business', as well as an inability to adapt and remain relevant. This doesn't only relate to global manufacturers but goes right down to any grass roots business.
My thoughts go out to all those affected, it's not just the hundreds of Holden employee's but the Dealerships, Sales consultants, Service departments and many thousands more.
It is a sad end to a part of our psyche and Identity. However on the flip side of that, I wonder how many more older vehicles will now become more collectible than they were before….
As we slide into the last week of Feb, its the usual talk about the economy and what the RBA will do or wont do. Employment figures took a turn for the worse, though is this really a surprise especially when many of the seasonally employed casuals pull up stumps?
With some huge results from Auction clearance rates in the last few weeks, you could be led to assume that there is nothing really wrong with the economy. Though that really depends on where you live.
Several stories again this week about the strength of smaller lenders and some not so small like Bendigo certainly giving the big banks a run for their money, Bendigo/Adelaide Bank making further investments and looking towards more commercial offerings. They could be taking a greater slice of market share away from the Big 4.
ANZ seemingly followed suit with CBA’s rate cuts, putting some of their fixed rates into the high 2’s, as well as debuting with a cracking 2 year fixed rate at 2.68% putting them firmly in the lead in this space.
As soon as the Big 4 move, the rest play follow the leader, so I think we can expect to see fixed rates fall a little further in the coming weeks.
Have a smashing week out there.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
Justin
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