Daily Dispatches: Suncorp shines, Mac makes another acquisition
Macquarie Group has bought Luxembourg private bank Sal Oppenheim's research and investment banking operations. The moves follows Macquarie's purchase of Sal Oppenheim's derivatives business in December. The acquisitions are part of Macquarie plans to expand its investment banking operations in the US and Europe. (The Australian)
Suncorp-Metway will come under increasing pressure from investors to update the market about its improving financial performance before its half-year results as analysts forecast a better-than-expected profit outcome in the wake of its major rival's earnings upgrade. Brokers now expect an equally strong interim result from Suncorp, owner of the AAMI, GIO and Vero brands, and expect this to translate into a full-year net profit of around $800m, a further gain on the most recent expectations. (Business Day)
The Reserve Bank of Australia has warned interest rates may rise further after modestly upgrading its core inflation forecasts for this year and next, ahead of an expected strengthening in domestic demand, the jobs market and wages growth.
The revival in Australian home prices risks stalling because slowing wage growth is putting higher house valuations out of the reach of buyers, said Bill Moss, former head of property at Macquarie Group. (Bloomberg)
