|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||55.37 - 55.37|
|52 Week Range||46.27 - 57.43|
|Beta (3Y Monthly)||1.03|
|PE Ratio (TTM)||14.46|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- Australia’s central bank was dragged further into the global easing tide as it cut interest rates for the third time this year, even as it risks refueling excesses that Governor Philip Lowe warned against just weeks ago.The Reserve Bank reduced the cash rate by 25 basis points to a record-low 0.75% and said it may ease even further, venturing deeper into levels where unconventional measures may need to be adopted. The move is in part designed to prevent a rebound in the depreciating currency that might have been triggered if it stood pat while global counterparts eased.“The global race to the bottom is, in a sense, dragging the RBA along,” said Michael Blythe, chief economist at the Commonwealth Bank of Australia. “Failure to participate could see the Australian dollar move higher.”Global risks from the U.S.-China conflict to Hong Kong riots have forced Lowe to tilt from a stubborn focus on financial stability that defined the start of his tenure three years ago. Only in August, he was warning global policy makers at the Jackson Hole symposium that easier monetary conditions will “push up asset prices, which brings its own set of risks.”Lowe’s fears were confirmed locally just hours before Tuesday’s decision, with data showing the RBA’s June and July cuts had reawakened Australia’s dormant housing market at a time households are already saddled with record debt levels. Prices rose the most since March 2017, led by hot spots Sydney and Melbourne.“The board took account of the forces leading to the trend to lower interest rates globally and the effects this trend is having on the Australian economy and inflation outcomes,” Lowe said in his statement Tuesday. It “will continue to monitor developments, including in the labor market, and is prepared to ease monetary policy further if needed.”The Australian dollar declined, trading at 67.06 U.S. cents at 4:15 p.m. in Sydney, compared with 67.48 cents before the decision.What Bloomberg’s Economists Say“The RBA continued to signal willingness to ease policy further, if needed. That should continue to keep a rein on the Australian dollar, further nurturing a recovery.”\--Tamara Mast Henderson, EconomistClick here for the whole reportTuesday’s cut is also designed to give maximum kick to a “gentle turning point” that Lowe says he sees in the economy following a year of weak growth. The governor is similarly trying to stem unemployment -- which climbed to 5.3% in August as a swelling labor force overwhelmed an increase in hiring -- and bolster consumer confidence in order to revive household spending.“Forward-looking indicators of labor demand indicate that employment growth is likely to slow from its recent fast rate,” Lowe said. “The economy still has spare capacity and lower interest rates will help make inroads into that.”Lowe wants to stoke the local economy hard to try to ensure its resilience. At 0.75%, the cash rate is close to the lower bound that he and Deputy Governor Guy Debelle estimate is around 0.25%-0.5%. Both have previously said they don’t expect to have to turn to bond buying and other alternative measures, as they wait and gauge the success of existing stimulus.“The Reserve Bank is likely to cut again early next year,” said Callam Pickering, economist at global jobs site Indeed. “Bank officials are reluctant to discuss quantitative easing but it becomes a real possibility the closer we come to a cash rate of 0%.”Lowe is scheduled to speak at the RBA board dinner later Tuesday, at 7.20 p.m. in Melbourne. There will be no Q&A session.(Updates with economist comments.)To contact the reporters on this story: Michael Heath in Sydney at email@example.com;Chris Bourke in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Nasreen Seria at email@example.com, Malcolm Scott, Chris BourkeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Commonwealth Bank of Australia and other ratings that are associated with the same analytical unit. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
SYDNEY/BENGALURU (Reuters) - Australia's three biggest banks said they will test a new bank-guarantee platform for shopkeepers that uses a shared database, claiming the project would mark the world's first use of blockchain technology to process retail financing. Commonwealth Bank of Australia, Westpac Banking Corp and Australia and New Zealand Banking Group Ltd are teaming up with local Westfield mall owner Scentre Group to test the use of IBM software to process financing contracts on the same network. The banks running the trial believe switching to blockchain could cut processing time to a day from a month and reduce the risk of fraud.
What’s curious is that Commonwealth – the biggest of the four banks that dominate deposit-taking and lending in Australia – is acting an awful lot like cornered prey when things don’t seem so bad. For another, Commonwealth Bank is head and shoulders above its rivals on two crucial fronts: price-to-book and net interest margins. Commonwealth Bank has the largest workforce among Australia’s big four banks, and the second-lowest sales-per-employee ratio in the most recent half-year reporting period, according to data compiled by Bloomberg.
CANBERRA, Australia (AP) — The Commonwealth Bank of Australia recorded a drop in statutory net drop in its latest half-year to 4.6 billion Australian dollars ($3.3 billion) on Wednesday as the nation's biggest lender was hit by costs for misconduct, lower profit margins and a downturn in the housing market.
Commonwealth Bank of Australia's (CBA.AX) chairwoman on Wednesday defended her testimony to a financial sector inquiry that she had raised governance concerns with senior management, even though lawyers said there were no records of her doing so. Catherine Livingstone was also grilled over why the head of the scandal-hit retail division was later appointed CEO, and why executive bonuses were only affected after events were reported in the media rather than when the board became aware of them. In her second day in the witness stand at the quasi-judicial inquiry, Livingstone said she had confronted management at a board meeting in late 2016 after regulators warned the bank about breaches of anti-money laundering and terror-financing laws (AML/CTF).
SYDNEY/TOKYO (Reuters) - Commonwealth Bank of Australia (CBA.AX) will sell its asset management arm to Mitsubishi UFJ Financial Group for $2.9 billion in a surprise sale, the latest business to be sold by an Australian financial giant amid unprecedented regulatory scrutiny. Australia's biggest lender said it was cancelling plans to list Colonial First State Global Asset Management in favour of a sale to create "a simpler, better bank". For MUFG, Japan's biggest financial group, the acquisition is the first in a grand plan to expand aggressively into overseas asset management, for which it has prepped a 1 trillion yen ($8.8 billion) warchest.
(Reuters) - Commonwealth Bank of Australia (CBA.AX) confirmed on Wednesday that it is in advanced talks with a party over the sale of its investment management business. Australia's largest lender had ...