RBA under pressure as more lose jobs
(23 August 2011 – Australia) The likelihood that the Reserve Bank of Australia (RBA) will slash rates in the coming months is increasing as more large companies lay off staff.
Bluescope Steel confirmed job losses, joining Qantas and OneSteel in their slash of staff after poor annual reports.
Following other banks recently forecasting RBA rate cuts, Merrill Lynch strategist Tim Rocks today told clients there are '100,000 job losses in the pipeline' and forecast the RBA to cut rates by November at the latest.
Bluescope said on Monday it would cut 1000 jobs due to the high Australian dollar and soaring materials costs, as it became the latest in a string of companies to announce job cuts in recent weeks, including Coca-Cola Amatil, Westpac, Premier Investments and Ten Network.
Deutsche Bank also said on Monday the recent market and economic data was concerning, and recommended clients trim exposure to resources and increase it for defensive stocks, like Telstra and banks.
'Recent developments prompt us to move more defensive at this point. Data over the past week has disappointed, raising the risk of a global recession,' said Deutsche strategist Tim Baker.
Following other banks recently forecasting RBA rate cuts, Merrill Lynch strategist Tim Rocks today told clients there are '100,000 job losses in the pipeline' and forecast the RBA to cut rates by November at the latest.
Bluescope said on Monday it would cut 1000 jobs due to the high Australian dollar and soaring materials costs, as it became the latest in a string of companies to announce job cuts in recent weeks, including Coca-Cola Amatil, Westpac, Premier Investments and Ten Network.
Deutsche Bank also said on Monday the recent market and economic data was concerning, and recommended clients trim exposure to resources and increase it for defensive stocks, like Telstra and banks.
'Recent developments prompt us to move more defensive at this point. Data over the past week has disappointed, raising the risk of a global recession,' said Deutsche strategist Tim Baker.
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