Reporting season kicked off this week with Suncorp, Genworth and Bendigo Bank being the primary issuers of note. Expectations of this reporting season are variable with the investment community focusing on the banks reaction to new capital rules and bulk commodity / energy producers reaction to volatile swings in commodity prices. Suncorp produced a solid set of results as Partick Snowdon announced farewell to reporting and mortgage delinquencies are on the rise in regional mining areas. Reporting season gets busy over the next few weeks so get ready for a few surprises. The RBA left rates unchanged at its July meeting as the labour market produced another solid set of jobs (albeit the unemployment rate increased due to higher participation) and economic conditions improved generally. Interest rate futures markets continue to price in a rate cut in the next 12 months but this is not news. However, the market is pushing out expectations for a rate rise (as is our expectation) due to uncertainty in the economy and banks acting independently of the RBA on mortgage pricing. Even cash cant protect investors as inflation expectations start to rise.