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Published on: Monday, August 07, 2017

  • CBA chief executive Ian Narev has vowed to help restore trust in the bank after it was accused of breaching money laundering and terrorism financing laws. In an interview with The Australian Financial Review, Narev said the bank is taking the case filed by the Australian Transactions Report and Analysis Centre (AUSTRAC) extremely seriously, and that senior executives would be held accountable. Last week, AUSTRAC launched civil proceedings against the bank. It alleges that CBA failed to report questionable transactions on time and therefore breached money laundering and terrorism financing laws. Last week, CBA shares fell 3.6% to $80.72.

Commonwealth Bank (CBA) branch in Brisbane. Source: AAP.

  • The latest US employment figures beat expectations. The US economy added 209,000 jobs in July, ahead of a forecast 183,000. On Friday, the US non-farm payroll report also showed the unemployment rate has fallen from 4.4% to 4.3%, in line with expectations. “Job gains occurred in food and services and drinking places, professional and business services, and health care.” Read the full economic release here
  • US share markets responded positively to the US jobs report. According to CommSec, shares in the financial sector rose as investors increased the chances of an interest rate hike by the end of 2017. The Dow Jones closed 67 points or 0.3% higher at 22,093 points, the S&P500 rose 5 points or 0.2% higher to 2476.83, while the Nasdaq rose 11 points or 0.2% to 6351.56. 
  • The preliminary auction clearance rate was 71.5% across the combined capital cities, compared to last week’s final auction clearance rate of 68.7%. Research house CoreLogic reports that while the number of auctions held in the first week of August (1,846) was lower than the previous week (1,987), it was still higher than the number reported one year ago (1,540). “Over the last month, auction volumes have remained relatively steady and while clearance rates have shown a softening, final results have been consistently in the high 60 per cent range since the first week of June”. See the table below for a snapshot of the preliminary results across the capitals:

Source: CoreLogic

  • At 0700 AEST on Monday, the share price futures index was up 24 points, or 0.42 per cent, at 5,5684.

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