The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) was eventful this week. Here are four big stories that affected the index:
Royal Commission is hurting the banks
Two of the major banks released their FY18 results today. Both National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) reported double-digit declines in their cash earnings due to refunds & remediation (and restructuring) relating to the Royal Commission. Ouch.
Australia's largest bank, Commonwealth Bank of Australia (ASX: CBA), also revealed the sale of its global asset management division in a bid to rid itself of the vertical integration model it had created.
Property prices keep falling
The flow-on from the Royal Commission has been a tightening of credit from the banks, leading to falling property prices. If people can't borrow as much they can't bid as much for property.
Nationally, house prices fell by 0.5% in October. In Melbourne and Sydney house prices fell by 0.7%. A negative wealth effect could hamper various points of the economy and share market.
Corporate Travel Management Ltd (ASX: CTD) faces the music
The travel business came out of its trading halt after responding to the various negative points raised by a short seller. Despite largely answering the points, investors have headed for the exits.
Since coming out of a trading halt Corporate Travel Management shares are down over 27% despite a recovery on Thursday.
BHP Billiton Limited (ASX: BHP) is rewarding shareholders
Resource shares have a reputation for being cyclical. When they're down it's bad, but when times are good investors can roll in the money.
BHP management unveiled a shareholder return bonanza this week with a US$10.4 billion buy back and special dividend program.
A very nice early Christmas present for BHP shareholders.
