I interview Ian Mortley from WLW Group on his insights into how the war in Ukraine will affect business in Australia and our economy.
We’ve all heard in the media about the principal giveaways that occurred in the budget:
$250 per head if you’re a pensioner or have a concession card
the low-income tax offset
the reduced minimum pension requirements
However, at WLW Group we prefer to focus on a strategic level, and areas that have an impact on our clients' businesses, as well as our own lives. Our hearts are with all the people of Ukraine having to experience this tragedy, though it’s important that we discuss how the Ukraine War will affect our lives and businesses in Australia.
In this interview, we talk about the invasion of Ukraine by Russia, followed by fuel prices which ultimately leads to inflation and interest rates.
A summary of topics we cover:
Budget papers
The motivation of the Russians
Why did they start this war
Land corridors into Russia
Analogy re Australia and Asia
Disruption has been financial, not physical
Some movement due to US strategic reserve
If your business is very fuel-dependent
Fuel prices and the supply chain
If you have clients or customers in the building game
Food prices: Ukraine, Russia and wheat
Effect through the food chain
Other problems on the horizon - China phosphate ban, natural gas & nitrogen fertiliser, potash
Inflation & RBA
Election spending: fire and flood recovery and defence spending
RBA was saying no rate increases till 2024
Expect the cash rate to rise by up to 1.25%