Investments

Home values in the capital cities have outperformed their regional counterparts for the first time in a year, sending national growth 2.8 per cent higher over March, according to CoreLogic data.With Sydney and Melbourne staging a full recovery from the downturn, the combined capitals grew 2.8 per cent over the month, outpacing the 2.5 per cent gain experienced in the regions.“That has been a reversal of the trend and it happened quite quickly,” CoreLogic research director Tim Lawless said.“I guess this is a testament that as the capital cities become more vibrant as we see workers returning to work, and demand starting to build back closer to the inner city areas, that the capital cities are starting to outperform the regionals, again.”Source: Financial Review newsfeed, 1 April 2021 Read more: City house prices stage comeback as trend to regions reverses...

There is good reason insurers have failed in four of the past five years to estimate the cost of bushfires, hailstorms and floods - actuaries failed to predict the intensity of natural perils caused by climate change.Ask the nation’s most eminent scientists about the possibility of recession on the east coast of Australia and they will answer with a resounding “yes” and warn it will probably be worse than expected.We are not talking about two quarters of negative economic growth. This is a recession that goes hand-in-hand with inundation and is potentially more financially destructive than a temporary dip in economic growth. Source: Financial Review newsfeed, 1 April 2021 Read more: Why nothing will hold this recession back...

Banks will have to examine a new metric – customer “dwell time” on their smartphone apps – to determine if they are winning a battle for customer engagement, says Emma Gray, group executive of data and automation at ANZ Bank.Banks will also need to get better at providing “experiences” for customers, a shift in strategic thinking from merely selling them products, Ms Gray added. Websites such as YouTube look at metrics such as “dwell time” to measure how long customers stay on their site, and banks will need to do the same for their apps to keep them competitive. “I think you’ll start to see that kind of dwell time metric becoming much more critical to banks than it is today,” she told The Australian Financial Review Banking Summit on Tuesday.Source: Financial Review newsfeed, March 31 2021Read more: Banks to adopt YouTube metrics...

The Australian sharemarket rose firmly on Wednesday in the final session of the quarter, buoyed by strong gains from the big banks and miners.The S&P/ASX 200 Index advanced 52.3 points, or 0.8 per cent, to 6790.7, rising as much as 1.8 per cent during the middle of the session. The climb capped off a quarter of two halves for the local sharemarket, with a strong January and early February partly undone in the latter half of the quarter by a rise in global bond yields. The S&P/ASX 200 Index still closed the quarter 3.1 per cent higher.“After last year’s false start, the prospects for a sustained reopening of economies through the second half of 2021 appear promising,” said Andrew Pease, Russell Investments head of global investment strategy.Source: Financial Review newsfeed, 31 March 2021Read more: ASX ends March quarter with a gain...

It is staggering how sharply sharemarkets have recovered from their COVID-19 induced despair of this time last year. From a low point on March 23 last year, the benchmark S&P/ASX 200 share index has surged about 53 per cent, while in the United States, the S&P 500 is up a whopping 70 per cent.However, despite the big gains, financial experts are keen to remind us that we are now living in a “low-return world” – a result of ultra-low levels of bond yields and interest rates.This may have particularly bleak implications for younger investors, as explained in a recent Credit Suisse report, which projected that Generation Z – those born between 1997 and 2012 – would likely experience much lower returns than the generations before them.Credit Suisse analysed decades of financial history, exploring the relationship between returns from shares and the yields on government bonds — the “risk-free” assets that sit...