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- 🦘 CBA Profits Set For A Dip, Good News For Renters (Finally), Albo Considers Gambling Ad Restrictions
🦘 CBA Profits Set For A Dip, Good News For Renters (Finally), Albo Considers Gambling Ad Restrictions
Hold onto your hats, folks! The Commonwealth Bank (CBA) is ready to reveal its full-year financial results, and it's a mixed bag. They’re forecasted to report a net cash profit of $9.77 billion, slipping 5% from last year's record $10.2 billion.

G’day everyone!
Here’s what we’ve got in store for you today:
CBA Profits Set For A Dip
Good News For Renters (Finally)
Albo Considers Gambling Ad Restrictions
Let’s have a look at the market snapshot before jumping into the news:

CBA Set for a Profit Dip, but Still Boasting Billions!
Hold onto your hats, folks! The Commonwealth Bank (CBA) is ready to reveal its full-year financial results, and it's a mixed bag.
They’re forecasted to report a net cash profit of $9.77 billion, slipping 5% from last year's record $10.2 billion.
Blame it on customers chasing better returns with high-yield savings accounts, which has chomped into the bank’s profit margins.
All eyes are on CBA’s CEO Matt Comyn, who will be spilling the beans on Wednesday. And yes, analysts are watching like hawks!
Jarden’s Jeff Cai expects a smidgeon better with a $9.86 billion profit, hinting that the broader economy is still hanging tough.
CBA’s net interest margin - basically how much they earn off loans versus their costs - is predicted to squeeze down to 2%.
Some issues loom large, like customers flocking to high-interest accounts, which is not so great for CBA’s pockets.
UBS analyst John Storey expects this shift to bump bad debts up to $498 million.
Despite all this, hope isn't all lost. Citi's analysts think the CBA will impress with a stronger loan growth, reaching a cool $940 billion.
And while dividends remain at $4.50 a share, flat from last year, investors are keen on what’s next for CBA’s financial future.
Stay tuned for the big reveal – it’s going to be a bumpy but exciting ride!
PM Albanese Weighs Balancing Act with Gambling Ad Restrictions
In a bid to curb gambling-related harms, internal discussions within the Labor Party reveal proposed new limits on gambling advertising, but don’t expect a total ban just yet.
Prime Minister Anthony Albanese acknowledges the complexity of the issue and has flagged concerns about "unintended consequences," particularly for regional media that are already feeling the pinch.
What's On the Table?
Two ads per hour limit until 10pm on each channel.
No gambling ads during children’s programs and for an hour before or after live sports.
While the proposal still has some MPs itching for a complete ban - a stance championed by late Labor MP Peta Murphy and supported by former PMs John Howard and Malcolm Turnbull - the current plan falls short of that.
Local broadcasting outfits like WIN and Prime, operating on razor-thin margins, might take a hit with these restrictions.
The government, sensitive to regional media’s financial struggles, especially with an election on the horizon, is proceeding cautiously.
Frontbencher Bill Shorten has voiced his reservations against a total ban, citing the financial vulnerabilities of free-to-air media companies struggling against tech giants like Facebook.
The Greens, not wanting to miss a beat, are ratcheting up the pressure by pushing for a vote in the Senate come Thursday to honor Peta Murphy's legacy.
Even if the plan clears Labor’s internal hurdles, the government still faces the challenge of securing enough votes in Parliament.
In a whirl of uncertainty, only time will tell if these reforms will make it to the finish line or if braver, bolder steps will emerge.
A Ray of Sunshine for Aussie Renters: Vacancy Rates Level Up
Good news, renters! The housing market is finally playing nice (kind of).
The latest PropTrack Market Insight report reveals a promising rise in rental property availability across Australia, offsetting the high demand driven by population growth.
July saw national vacancy rates slightly dip by 0.01 percentage points to 1.42%, continuing a steady increase observed over the past three months.
While capital cities held steady at 1.47%, regional markets saw a minor 0.04 ppt decline, contributing to the national drop.
Melbourne bucked the trend, with vacancies rising by 0.05 ppt to 1.56%.
Conversely, Sydney held its ground at 1.68%.
Darwin posted the lowest vacancy rate among capitals at 1.03%.
Hobart saw the most significant drop, with vacancies falling by 0.17 ppt to 1.11%.
PropTrack's Senior Economist Anne Flaherty notes that rental conditions remain tough, but there’s a silver lining.
Increased investor activity has bolstered supply, with new loan commitments to investors up 25% in the June quarter compared to last year.
This influx of rental properties is helping to balance the surge in demand.
However, regional areas are still feeling the pinch, with vacancy rates dropping to 1.28% in July.
Nonetheless, there's hope on the horizon for renters, as new data from SQM Research indicates capital city rents have experienced their biggest monthly falls since the pandemic.
Hang tight; it looks like renters may finally catch a break soon!
SEEK Faces Stormy Seas with $100M Loss Amid Job Market Slump
SEEK, the popular online job marketplace, finds itself in rough waters, reporting a $100.9 million loss for FY24.
The primary culprits? A struggling employment market and a hefty $141 million impairment from its stake in Chinese job site Zhaopin.
Revenue for SEEK dipped 6% to $1.08 billion, with Australia and New Zealand taking a notable hit, dropping 8%.
The volume of job ads fell by 20%, mirroring a rising unemployment rate and lower job vacancies across its operations.
CEO Ian Narev points out this decline follows record volumes in FY22 and FY23, bringing SEEK back to earth.
Though EBITDA in Australia and New Zealand slumped by 9% to $455 million and Asia's EBITDA plummeted 51% to $46 million, Narev remains optimistic.
SEEK completed its ambitious Platform Unification project ahead of schedule and under budget, and even managed to boost its placement share significantly.
Despite stock shares dropping by 9.5% today, falling to $20.03, SEEK has its eyes set on future growth, aiming for $2 billion in revenue by FY28.
Narev highlights ongoing investments in AI and operational efficiencies as the company's strategy to weather the economic storm.
With FY25 revenue forecasted to be subdued, SEEK is gearing up for a bumpy ride but remains focused on capturing innovation benefits and maintaining cost efficiency.
Onwards and upwards, we hope!
You Made It!
If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!
Time to go to work and show off how clued up you are about what’s going on in the business world 💪
Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!
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