In financial markets there is a saying that you’re only as good as your last trade. That may be so, but the last (and some would say only) good trade from 1980’s pop band Katrina and the Waves – “Walking on Sunshine” – was 30 years old this year and the rights to the song were recently sold to German media corporation, Bertelsmann for a cool £10m. The song still generates over £1m a year in royalties and endorsements.
On the subject of one-hit wonders, I guess the prize goes to the English cricket team who pummelled Australia in the fourth test at Trent Bridge in just over two days. Let’s hope it is their “last good trade”. And the outgoing Australian captain, well his last “trade” will be one he won’t want to remember.
To the markets and, as widely expected following the Reserve Bank monthly Board meeting, the official cash rate was held unchanged last week plus most of the accompanying statement was identical to last month’s. The Reserve Bank did however make reference to the Australian dollar needing to fall further and there was also very little on global conditions, including no comments on China. The cash rate remains at 2%, global financial conditions are accommodative, Australia’s economy is operating with spare capacity and inflation will remain within the target zone over the next few years. So the debate goes on as to whether there will be another rate cut here before Christmas.
Overnight Cash Rate Futures Pricing