NAB Morning Call

Friday 9th February 2024Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.Australian tourism was enjoying record highs for visitor numbers before the pandemic. Then we closed the borders. Visitor arrivals are picking up again, but are still not back to 2019 levels. But Samantha Palmer, general manager of Austrade’s visitor economy and client programs division, says we’ll break that record for visitor numbers in 2025 and exceed the spend record this year. That makes tourism infrastructure a solid investment promotion. But what sort of product is required and how can you finance all that upfront investment when a brand-new offering could take a while to provide cash returns?  Hosted on Acast. See acast.com/privacy for more information.

Discussion on current interest rates, oil prices, and stock markets. Central bank commentaries on easing and market uncertainties. Strong demand for bonds and rate hike uncertainty. Oil prices and upcoming testimony. RBA's thinking and upcoming economic data.

Thursday 8th February 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABOnce again central bankers have been out pushing the message that rates will not be coming down quickly. What’s more, the neutral rate is likely to be higher than before. There was a lacklustre response from bond markets, which managed to absorb $2 billon worth of new issuance. The market moves have been in equities, with the S&P close to, but not quite hitting - 5,000. Phil asks NAB’s Tapas Strickland whether this is misplaced optimism.  Hosted on Acast. See acast.com/privacy for more information.

Wednesday 7th February 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABIt was a busy day for Australia yesterday, with the RBA announcement, the statement of monetary policy, and the press conference. For all of that there wasn’t any wild fluctuations in markets, despite the hawkish tilt and the spectre of a rate rise given as one possible course of action if services inflation remains too resilient. But, as NAB’s Gavin Friend points out, most of the market action was in US bond markets, where yields fell significantly overnight. It’s the lack of tier one data, says \gavin, driving speculation.  Hosted on Acast. See acast.com/privacy for more information.

Tuesday 6th February 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABStronger than expected ISM services data yesterday has dampened further the likelihood of a March rate cut. Meanwhile, China is taking more steps to stem the outflow from equity markets. Australia, meanwhile, readies itself for the first RBA announcement of 2024. But its not just an announcement, it’s the release of the Statement on Monetary Policy and a press conference. NAB’s Rodrigo Catril talks us through this new look RBA performance and why it could prove to be choppier for bond and currency markets. Hosted on Acast. See acast.com/privacy for more information.

Monday 5th February 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABUS payrolls numbers on Friday showed a surprisingly large upswing, mirroring the ADP numbers earlier in the week. The data also showed a higher-than-expected increase in wages. NAB’s Ken Crompton says this puts paid to any hopes of a March rate cut, with the first fully priced cut expected in June. He adds there’s a chance that inflation data could be revised up a little later this week. The BoE’s Huw Pill meanwhile has been promoting the need to wait longer before cutting, adding to the underperformance of Gilts on Friday. It’s a quiet start to the week, but the main interest locally is obviously the RBA tomorrow, with the rates announcement coinciding with the publication of the Statement of Monetary Policy, followed by a press conference by Michele Bullock. A lot to take in.  Hosted on Acast. See acast.com/privacy for more information.

Friday 2nd FebruaryPlease note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.Sydney and Melbourne property prices are down from their peaks, whilst Brisbane, Adelaide and Perth reached all time highs last month. But for how long? Will Sydney and Melbourne bounce back? Phil talks to Eliza Owen Core Logic’s Head of Residential Research about recent trends in the property market which, despite everything, continues to enjoy rising prices, but for how long? What impact is migration having on demand for dwellings in Sydney and Melbourne. What’s driving the widening gap between house prices and apartments? And what are the trends Eliza thinks we’ll see this year that might surprise you. Even if you are not a property investor, or considering a housing purchase, this is compulsory listening for anyone gathering ammunition for Australia’ favourite dinner party conversation – house prices! Hosted on Acast. See acast.com/privacy for more information.

Friday 2nd February 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABIt wasn’t a unanimous decision by the Bank of England overnight. Some of the board wanted to lift rates, the majority wanted to hold, but there was one who still wanted to push them higher. All in all a March cut is now extremely unlikely according to NAB’s Gavin Friend, who says those pricing in 100bp of cuts this year have probably got it wrong. We also look at the fed’s decision, one day on. Shares are higher and bond yields lower, so it seems the prospect of delays in cuts hasn’t phased the markets too much. The latest ISM report painted a slightly more optimistic picture for US manufacturing, but prices remain a concern. Wages will be watched keenly, of course, in the non-farm payrolls out on Friday in the US. Jerome Powell said this week he was looking for more “good data” – maybe this will be one of those reports. Hosted on Acast. See acast.com/privacy for more information.

Thursday 1st February 2023NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABAt the FOMC today a unanimous decision was made to keep rates on hold, but there was suggestion that they’d be cutting rates anytime soon. JBWere’s Sally Auld says this will dent the optimism of those hoping for a lower rate in March. Australia’s inflation numbers yesterday are also unlikely to change the stance of the RBA next month. The Bank of England meets later today – three of the nine board members voted for a hike last time.  Hosted on Acast. See acast.com/privacy for more information.

Wednesday 31st January 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABWe are less than 24 hours away from the next FOMC meeting. NAB’s Tapas Strickland says an indication that the Fed was dropping its tightening bias would help validate the higher expectations for cuts in market pricing. But will it happen? Even though inflation is falling, consumer confidence is also on the rise and there are more than 9 million jobs looking for employees. Also today we discuss Australia’s retail numbers yesterday, what we can expect in today’s CPI and the latest forecasts from the IMF, which paints a slightly rosier picture in their latest World Economic Outlook.  Hosted on Acast. See acast.com/privacy for more information.