ASX to fall 14 iron ore plunges to US93
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Minutes after general insurer IAG released a statement about its chief risk officer resigning, the Bank of Queensland said he was joining their ranks.
The former IAG CRO, David Watts, will join BoQ early next year.
IAG’s David Watts has resigned to join the Bank of Queensland team.Credit:Louie Douvis
“Mr Watts has deep experience in financial and non-financial risk management and has held CRO roles at several leading financial institutions in Australia and New Zealand,†the bank said.
“Current Chief Risk Officer Adam McAnalen will remain an executive within the Group and will be moving into a new role to lead key elements of the integration and transformation program. Mr McAnalen will remain as Group CRO ahead of a transition to Mr Watts.â€
BoQ also announced its chief product officer Chris Screen had been promoted to the group’s business banking executive role.
“Having provided valuable leadership of the Business Bank amid a challenging period impacted by Covid-19 disruption, Fiamma Morton has decided it is the right time to pursue other opportunities and will depart as Group Executive BOQ Business,†the bank said.
Fintech, booze and food are the three top performing sectors in Australia’s fledgling equity crowdfunding space.
Equity crowdfunding, which became legal in Australia just a few years ago thanks to investment law changes, lets publicly unlisted companies offer their users and fans a small slice of their business, often starting with parcels as small as $50.
The space raised just $46 million for companies in the 2021 financial year, but that is more than double the $20.4 million raised in 2020, according to a new industry paper released by fundraising platform Equitise today.
Its review of the sector also outlines the three top performing sectors for raising cash in this format. Since 2017, fintech businesses have raised $19.5 million, alcohol producers have banked $9.5 million and food operators have netted just over $6 million.
That’s still a drop in the ocean compared to the country’s multi-billion venture capital sector, but Equitise boss Johnny Wilkinson argues the number of startups looking to the crowd is continuing to increase.
Outdoors retailer Kathmandu has leant heavily on its recently acquired surf retail division Rip Curl for its full-year results today, with the Torquay-based business driving almost all of the company’s growth for fiscal 2021.
Sales across the group, which includes Rip Curl, the eponymous Kathmandu brand and footwear brand Oboz, rose 15.1 per cent to $NZ922.8 million ($891 million) across the year, with earnings before interest and tax jumping nearly 50 per cent to $NZ92.2 million.
Black is out in Kathmandu’s new winter range.
A full 12 month contribution from Rip Curl, which the business acquired in late 2019, underpinned this result. The division was responsible for $NZ490 million in sales and $NZ56.9 in earnings, the latter of which was up a massive 1252 per cent on the prior year.
The company said the acquisition had outperformed expectations, and allowed Kathmandu to declare a final dividend of 3 cents per share, payable December 15.
Kathmandu itself saw sales plummet, however, down 17 per cent to $NZ354 million and earnings nearly halved to $NZ26.3 million. The division was heavily affected by the pandemic and associated lockdowns through much of 2021.
Those lockdowns have continued to batter the business, with Rip Curl sales down 12.8 per cent in the six weeks to September 12, and Kathmandu sales down 19.9 per cent.
Supply chain issues are also stymieing the retailer’s stock levels, with reduced factory capacity and freight congestion leading to delays and increased costs. Due to this, the company expects its first half profit for fiscal 2022 to be below the prior half.
Wall Street’s main indexes tumbled on Monday, as concerns about the pace of a global recovery hit economy-linked stocks at the start of a week in which the Federal Reserve will decide on potentially tapering its pandemic-era stimulus.
The S&P 500 fell 75.26 points, or 1.7%, to 4,357.73, it’s biggest drop since May. At one point, the benchmark index was down 2.9%, the biggest decline since last October. The S&P 500 was coming off two weeks of losses and is on track for its first monthly decline since January. The S&P 500 has gone an unusually long time without a pullback of 5% or more.
All the major US markets closed lower overnight.Credit:AP
The Dow Jones Industrial Average fell 614.41 points, or 1.8%, to 33,970.47. The blue-chip index was briefly down 971 points. The Nasdaq fell 330.06 points, or 2.2%, to 14,713.90. The Hang Seng, Hong Kong’s main index, dropped 3.3% for its biggest loss since July. European markets fell about 2%.
“What’s happened here is that the list of risks has finally become too big to ignore,†said Michael Arone, chief investment strategist at State Street Global Advisors. “There’s just a lot of uncertainty at a seasonally challenging time for markets.â€
The banking sub-index shed 2.9%, tracking U.S. Treasury yields as investors flocked to the safety of bonds on worries about the default of Chinese property developer Evergrande.
Wall Street’s main indexes have been hurt this month by fears of potentially higher corporate tax rates denting earnings and have shrugged off signs inflation might have peaked. The benchmark S&P 500 is on track to snap a seven-month gaining streak.
All eyes on Wednesday will be on the Fed’s policy meeting, where the central bank is expected to lay the groundwork for a tapering, although the consensus is for an actual announcement to be delayed until the November or December meetings.
“Markets have been priced to perfection for a long time and in this September lull that seems to be quite seasonal throughout history, markets are dealing with the thing they hate most â€" uncertainty,†said David Bahnsen, chief investment officer, The Bahnsen Group in Newport Beach, California.
“There is uncertainty around geopolitics, public health policy, tax and spending legislation, but this market has experienced almost no downside volatility for a long time and a pullback was long overdue.
Strategists at Morgan Stanley said they expected a 10% correction in the S&P 500 as the Fed starts to unwind its monetary support, adding that signs of stalling economic growth could deepen it to 20%.
The CBOE volatility index, known as Wall Street’s fear gauge, hit its highest level in a month.
AP and Reuters
S&P/ASX 200 Index futures dropped 1.4% to 7,118 as of 6:59 a.m. Sydney time. Futures relative to fair value suggest early decline of 1.4%. U.S. stocks fell, although the S&P 500 pared losses late in the session, amid a global rout sparked by China real estate angst and Federal Reserve tapering.
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- from Bloomberg.
Good Morning and welcome to what should be another big day on Markets Live.
Dominic Powell and Colin Kruger are editing the blog today.
This blog is not intended as financial advice.
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