Here’s why Ian Narev will survive at CBA

James Kirby is back from leave and Alan Kohler’s taken his, so John Durie, senior writer with The Australian joins Kirbs in The Money Cafe to discuss:
  • CBA must have been surprised by the money laundering charges, which is the first major problem on Ian Narev’s watch
  • CBA was a ‘safe as houses’ stock, but is there a risk that it’s golden era as a stock coming to an end?
  • The market doesn’t like management changes, so Ian Narev is likely to stay
  • Greg Medcraft from ASIC doesn’t like the banks and is likely make that point known in Canberra on Friday
  • The AUSTRAC kerfuffle was simply caused by computer software, which highlights the operational risks in banks and Australian banks don’t put enough money into managing those issues
  • Rio and BHP are the bellwether of our resources market and John didn’t think Rio’s results were as good as others did, even if they paid the biggest dividend they’ve ever had
  • Analysts are forecasting poor results from miners next year, than we’ve had this year, because there won’t be as much turnaround benefit
  • The outlook ahead for corporate Australia according to John – banks will be fine, big miners okay, retail will be the interesting one to watch, but the Amazon story is overcooked

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Transcript coming soon