The “big four” make their move on interest rates
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Two days after the RBA’s announcement that it will increase the cash rate by 50 basis points, Australia’s four big banks have followed suit, confirming they will raise interest rates by 0.5 percent.
Macquarie Bank, the country’s fifth largest lender, was the first to announce a rate rise within hours of the Reserve Bank decision but the ‘big four’ took their time, with Australia’s largest mortgage holder, the Commonwealth Bank the next to confirm a rise in the variable rate two days later. The other three – ANZ, Westpac and NAB – were quick to follow suit.
While it is unusual for lenders to move slowly, it is not unprecedented. In 2010, three of the big four took between eight to 10 days to raise rates.
In worrying news for savers, it could be an indication that the banks are considering whether to pass the full increase onto their savings customers.
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Starbucks is making another major leadership change just one week after new CEO Brian Niccol started his job.
Michael Conway, the 58-year-old coffee chain’s head of North America, will be retiring at the end of November, according to a Monday filing with the Securities and Exchange Commission.
The decision came only six months after Conway took on the job. His position won’t be filled. Instead, the company plans to seek candidates for a new role in charge of Starbucks’ global branding.
The chief brand officer role will have responsibilities across product, marketing, digital, customer insights, creative and store concepts.
“Recognizing the unmatched capabilities of the Starbucks team and seeing the energy and enthusiasm for Brian’s early vision, I could not think of a better time to begin my transition towards retirement,” wrote Conway in a statement.
Conway has been at Starbucks for more than a decade, and was promoted to his current job—a newly created role—back in March, as part of the company’s structural leadership change under former CEO Laxman Narasimhan.
The coffee giant has been struggling with weaker sales in recent quarters, as it faces not only macroeconomic headwinds, but also operational, branding, and product development challenges.
Narasimhan was taking many moves to turn around the business, but faced increasing pressure from the board, shareholders, and activist investors.
One month ago, Starbucks ousted Narasimhan and appointed Brian Niccol, the former CEO at Chipotle, as its top executive. The stock has since jumped 20% in a show of faith for Niccol, who started at Starbucks last week.
When he was at Chipotle, Niccol made a few executive hires that were key to the company’s turnaround.
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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
