Consumer jitters aren’t going away: CBA

Commonwealth Bank of Australia boss Ian Narev doesn’t see a catalyst for the end of global economic uncertainty. Photo: Andrew Quilty

Count Commonwealth Bank boss Ian Narev among those who think consumers may still be a little hesitant to part with their hard earned cash.

In the bank’s full-year financial results on Wednesday, Narev offers a brief outlook for the coming months, saying “The global economy remains uncertain. It is difficult to see the catalyst for alleviating the uncertainty, which will continue to affect consumer and corporate confidence”.

As a result, Narev says the CBA – which booked a record $7.11 billion profit for the year ended June 30 – will retain “conservative business settings” at least for the time being.

Half a world away, Warren Buffett looks like he could be thinking at least a little along the same lines. As The Australian Financial Review reports on Wednesday morning, Buffett’s Berkshire Hathaway sharply reduced some of his biggest holdings in the June quarter.

These holdings? Fast moving consumer goods outfits Procter & Gamble, Kraft and Johnson & Johnson.

But the billionaire investor also made a couple of fresh plays in the quarter with bets on oil in the form of stakes in ConocoPhillips spin-off Phillips 66 and equipment maker National Oilwell Varco.

Other Berkshire investment moves during the period include increased positions in Wells Fargo, IBM and Viacom. But the fabled firm sold out of Intel.

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