What's making news on the ASX on Wednesday
Shares have opened higher as RBA governor Philip Lowe delivers his final speech of 2022.
.jpg)
Mentioned: ANZ Group Holdings Ltd (ANZ), Bendigo and Adelaide Bank Ltd (BEN), National Australia Bank Ltd (NAB), Westpac Banking Corp (WBC)
Here’s three things making news on the ASX this Wednesday, 14 December.
1. ASX200 follows Wall Street higher
The local share market has jumped at the open following a choppy session on Wall Street.
U.S. stocks jumped on weaker-than-expected U.S. inflation data, although pared much of the gains by late trade as investors turned their attention to the U.S. Federal Reserve’s interest rate decision tomorrow, with a half-percentage-point increase widely expected.
2. RBA governor delivers final speech for 2022
Reserve Bank governor Philip Lowe has expressed his hope to continue in the role for a second term, during a Q&A session in Sydney on Wednesday.
Speaking at the annual 2022 AusPayNet Annual Summit, Mr Lowe pushed back against calls for him to resign, saying he has important work to do to get inflation lower.
"My term finishes in September next year," Mr Lowe said. "Whether I can join you [at this event] for a seventh time is not in my control. I hope so, but we'll see."
The RBA governor has been criticised for his communication during the pandemic, particularly over a decision to issue a forward guidance, telling borrowers interest rates were expected to remain on hold until at least 2024.
"There have been calls for me to resign. As I said before, I have no intention of resigning, I have an important job to do," Mr Lowe said.
"We've got to get inflation down and that's my focus, and I will keep doing that until at least September next year."
3. Westpac holds annual general meeting
Westpac (WBC) is the first of three big four banks set to hold their AGM this week, announcing the retirement of chairman John McFarlane in December next year.
ANZ (ANZ) will hold its AGM on Thursday and NAB (NAB) on Friday.
It follows a strong session for the banks on Tuesday, with Bendigo and Adelaide Bank (BEN) surging on the back of a solid trading update.
Morningstar senior equity analyst Nathan Zaia says the result was in line with Morningstar expectations, maintaining a fair value estimate on no-moat Bendigo and Adelaide Bank of $10.20.
