Talk Around Town

With the 2010 year well under way, it appears that the Transport sector continues to stand up well to the current financial pressures being experienced. The Banks are certainly not freeing up capital to small business looking to expand or indeed replace existing equipment – anyone who has sought business lending would have experienced the additional scrutiny that the Banks and Finance companies are putting business borrowers through. Banks may advertise; “We live in your world”, but we think that is only true if you also sleep with the light on!

The lead up to June 30th, when larger companies with turnover over $2.0 million must have goods ordered under the Investment Allowance installed and settled, has seen very strong demand. We trust that this demand will continue into July and beyond and that 2010 will lay the foundation for a sustained strong economic recovery.

As mentioned in the last newsletter, the Reserve Bank continues to creep up rates back to ‘normal levels’ . We believe this is around the 5%-5.5% range and expect the rates to achieve this level by end 2010.

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