02 Feb GOODBYE CHRISTMAS, HELLO FEBRUARY EARNINGS SEASON; OFFICE TUMBLEWEEDS
GOODBYE CHRISTMAS, HELLO FEBRUARY EARNINGS SEASON
Just as we have finished packing up the Christmas tree, February reporting season kicks off in earnest next week. So, what are we expecting to see?
For most companies, interim profit forecasts are only expected to increase by a very modest 1 per cent, according to data from Bloomberg.
This financial year, analysts at Morgan Stanley are expecting earnings downgrades of 12 per cent, with those at Macquire predicting an 8.5 per cent drop in earnings per share as the mining industry and the banks tackle high commodity prices and margin pressures, respectively.
But hope might be just around the corner!
Macquarie is predicting earnings to recover in FY25, with a 5 per cent increase across the ASX200 as interest rates are expected to be cut.
OFFICE TUMBLEWEEDS
In an attempt to crack down on workplace attendance, Ernest and Young in the UK has started to monitor swipe-card entry data to see how often workers are entering and exiting the company’ offices.
Australian companies may soon adopt a similar monitoring system as vacancy rates for office towers increase to levels not seen since 1995 – the year the movie Clueless hit the cinema screens!
A new report from the Property Council found that national vacancy rates increased from 14.1 per cent to 14.8 per cent over the past six months, with Melbourne suffering the highest levels across the country.
THAT MUCH FOR TWO POACHED EGGS ON TOAST?
There was good news for consumers last week with the overall inflation rate easing to 4.1 per cent in the year to December.
But looking more closely at the numbers, it seems brunch is still causing pain on the hip pocket with bread and egg inflation steady at 10 per cent. God forbid you ask for a side of smashed avocado…
Also, if you are a coffee or tea drinker, your brunch bill will increase by 3.4 per cent.
With growing scrutiny coming for the nation’s large supermarkets, we will be keeping an eye on The Brunch Index throughout 2024.
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