16 Feb LOWE’S FATE; FRYERS, PUBS AND BLOOD
Welcome to this week’s round up of insights and commentary, brought to you by Team Cannings.
No matter what he says these days, RBA Governor Philip Lowe can’t seem to win, whether he is talking in public to a bunch of headline-conscious politicians, or behind closed doors to a bunch of well … bankers.
Calls are mounting for Lowe to step aside over his public comments about the likelihood of more interest rates, as well as his private remarks to a lunch hosted by investment house Barrenjoey that may or may not have caused bond markets to move.
For now, Lowe appears to be prepared to tough out the criticism. He stuck to his script on the need for higher rates when he faced a Senate committee this week, and insisted there was nothing “untoward” about the now-controversial Barrenjoey lunch.
Defending his decision to go to lunch, Lowe came up with a strong contender for “soundbite” of the week: “I can’t live in a bubble”.
FRYERS, PUBS AND BLOOD
What do air fryers, pubs and blood plasma have in common? Soaring sales, according to week two of reporting season.
Our love for pubs and hotels (especially post-lockdowns) shows no signs of abating, with Endeavor Group’s results revealing that despite rising inflation and interest rates, people are still flocking to pubs and liquor stores to enjoy a tipple.
Consumers are also treating themselves inside their homes, with strong sales of air fryers and expensive coffee machines helping Breville boost its interim net profit despite rising prices.
Meanwhile, global biotechnology giant CSL also increased sales of its medicines that use blood plasma collected from donors to help treat diseases.
THE KIDS ARE ALRIGHT
Young jobseekers are reaping the benefits of a tight labour market and a lack of skilled migration with average salaries for new graduates rising almost nine per cent in one year, as companies try to woo the best talent.
Traditional recruiters, such as banks and law firms, along with organisations that have previously been uninterested in recent graduates have all significantly increased their annual intake, with some offering $200,000 to $300,000 salaries to attract the top one per cent.
But the courting might not last long. A LinkedIn study in the UK found about 80 per cent of Gen Z employees are considering new jobs, with the majority finding their current roles unfulfilling and lacking a greater purpose in society.
TECH TO THE RESCUE
As Australian manufacturers begin to recover from the pandemic’s impact on global supply chains, many are still battling against high operational costs from inflation, rising interest rates and labour shortages.
Ian Macdonald, chief executive of software company Epicor – a Cannings’ client – shares his views on how manufacturers can leverage technology to tackle rising costs in the latest issue of Australian Manufacturing Technology Magazine.
Read his piece here: https://issuu.com/amtil/docs/1697_amt_febmar23_lr_v2/30
Feel free to share these updates with colleagues or friends. They can sign up here to receive our daily newsletter.