2019 CEO Survey: Anthony Sweetman, UBS Australia

Anthony Sweetman, the co-CEO of UBS Australia. Picture: John Feder

Every year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.

Here, in his own words, is what UBS Australia co-CEO Anthony Sweetman sees ahead in 2020.

You can read more from the CEO Survey.

How is your company affected by low-interest rates and what is needed to boost the economy?

Domestically it’s been positive with the change in interest rates increasing trading activity in fixed income and equities. From a corporate perspective, low-interest rates are generally a positive for M&A activity and associated capital raisings in yield focused sectors as people look to take advantage of low rates and enhance growth with acquisitions. For other sectors, low rates reflect more challenging operating conditions that can increase the attractiveness of transactions to enhance shareholder value, either through acquisitions to increase growth or through divestments to realise attractive values being offered by acquirers.

What is the impact of government regulations on your company, including those applying to the financial sector?

As a global organisation, we have been subject to the regulatory change in the financial sector that has been happening for the past decade. To a large extent, the more recent changes in Australia that are directly applicable to UBS are largely consistent with changes that have already occurred in a number of other jurisdictions.

What percentage of company revenues are spent on research and development, and how is your company using technology to improve performance?

Technology is a critical part of our business. Globally we continue to invest in technology, spending in the order of $5bn annually on IT through a combination of running the existing systems, regulatory change projects and strategic business initiatives with a strong focus on innovation.

What are the three major policy issues facing the country and what should be done about them?

● A lack of productivity growth, which was negative in 2019, is clearly a big issue at the moment. This is not an easy problem to fix, but reforms to encourage more investment in capital and further reduce red tape would go some way to help.

● Over the past decade, Australia’s energy policy has lacked clarity and consistency. Businesses are not surprisingly reluctant to make significant long-term investment decisions in this environment, and ultimately it is the community that will incur the cost either in the form of lost opportunities and/or higher prices than would otherwise be necessary. Clear and consistent long-term policy should enable Australia to benefit from its advantages in natural energy resources, both renewable and provided by extractive industries.

● Trade continues to be an issue dominating markets this year, though it impacts global markets more than domestic. Although Australia has a good track record, we won’t be immune if free trade is reduced globally.

What are the major impediments to long-term growth facing your company and what can or is being done about them?

The fundamentals for Australia are very strong. We have considerable advantages relative to most of the developed world from a number of perspectives including population growth, employment and the government’s fiscal position. It would be disappointing if, after 26 years of economic growth and with strong fundamentals, we don’t make the most of our position due to negative sentiment or business and government being too short-term focused. If both work together, we should enjoy further economic growth for many years and continue to be the envy of other countries.