Financial Services Talking Points | 20/11/18

In today’s talking points NAB to launch Alipay into Australia, IMF Optimistic on the Australian Economy despite risks from China and the US-China trade war, sales soft on Chinese Consumer demand.

NAB to launch Alipay into Australia by early 2019

NAB has emerged as the first of the big-4 Australian banks to offer Alipay, China’s largest payment platform with more than 50% market share.  NAB said on Monday it has started Australian payment terminal trials with a view to full merchant availability in early 2019.

NAB Executive General Manager of deposit and transaction services Shane Conway said, “This means from next year, Aussie businesses with a NAB merchant terminal can offer Chinese tourists Alipay, their preferred QR code payment method, in-store, and unlock an opportunity to promote their businesses on Alipay’s marketing platform which has 870 million active users.”

Source: ITN News


IMF Optimistic on Australian Growth but sees risks on China, trade war

The IMF reported in an initial Article IV concluding statement that the balance of risks to Australia’s economy are “tilted to the downside” due to a deteriorating global outlook urging the RBA to keep interest rates low.

“A weaker than expected near-term outlook in China, coupled with further rising global protectionism and trade tensions could delay full closure of the output gap,” the IMF said.

Australia is the most China dependent developed globally and as a small, open trading nation is vulnerable to global volatility.

Source: Sydney Morning Herald sales soften on weaker consumer demand

JD continues to battle soft consumer demand having already lost nearly half its market value this year as it fights intense competition for Chinese online consumers.

On Monday, JD also forecast fourth quarter sales growth between 18 and 23 percent, below an average analyst estimate of 23.5 percent.

CFO Sidney Huang said the “relatively soft” sales forecast was connected to the ongoing consumption slowdown in China.

Source: Yahoo