Author: roymorgansocial

BHP oil division stymies S&P upgrade

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 14-Mar-18

BHP Billiton has reduced its net debt by US10.5bn ($A13.3bn) since Standard & Poor’s downgraded its credit rating from "A+" to "A" in 2016. Although S&P has since upgraded BHP’s outlook from "negative" to "stable", analyst Elad Jelasko says a decline in BHP’s portfolio diversification has contributed to the lack of a credit rating upgrade. He notes that the downturn in earnings from BHP’s petroleum division has helped to offset the positive impact of the reduction in net debt. Jelasko adds that the proposed sale of BHP’s US shale assets is unlikely to affect its credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S FINANCIAL SERVICES LLC, RIO TINTO LIMITED – ASX RIO, SAMARCO MINERACAO SA

Credit Suisse picks top takeover targets

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Original article by Simon Evans
The Australian Financial Review – Page: 18 : 14-Mar-18

Hasan Tevfik of Credit Suisse expects mergers and acquisitions activity in Australia to remain strong during 2018, citing factors such as healthy balance sheets and growing business confidence. Credit Suisse has identified 31 listed stocks that could potentially become takeover targets in 2018. They include Santos, Whitehaven Coal, Nine Entertainment Company, Fairfax Media, Ardent Leisure Group, DuluxGroup, Origin Energy and Caltex Australia.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, SANTOS LIMITED – ASX STO, WHITEHAVEN COAL LIMITED – ASX WHC, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, ARDENT LEISURE GROUP – ASX AAD, DULUXGROUP LIMITED – ASX DLX, ORIGIN ENERGY LIMITED – ASX ORG, CALTEX AUSTRALIA LIMITED – ASX CTX, SEVEN WEST MEDIA LIMITED – ASX SWM, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, ADELAIDE BRIGHTON LIMITED – ASX ABC, NUFARM LIMITED – ASX NUF, PRIMARY HEALTH CARE LIMITED – ASX PRY, SYRAH RESOURCES LIMITED – ASX SYR, APA GROUP – ASX APA, BLACKMORES LIMITED – ASX BKL, CHALLENGER LIMITED – ASX CGF, TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD, CHINA NATIONAL CEREALS, OILS AND FOODSTUFFS IMPORT AND EXPORT CORPORATION, WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO

Doyle damned

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Original article by John Masanauskas, Aneeka Simonis
Herald Sun – Page: 1 & 4 : 14-Mar-18

Melbourne City Council’s investigation into the conduct of former Lord Mayor Robert Doyle has found that he sexually harassed female councillors on three separate occasions. The investigation headed by Ian Freckelton also found that Doyle had consumed a significant amount of red wine on the three occasions when he had sexually harassed Tessa Sullivan and Cathy Oke. Amongst other things, Freckelton’s report has recommended that the council review its policy regarding the serving of alcohol at council meetings. Doyle continues to deny all allegations against him.

CORPORATES
MELBOURNE CITY COUNCIL

Tax fraud prosecutors tip raft of fresh charges

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Original article by Sam Buckingham-Jones
The Australian – Page: 4 : 14-Mar-18

Prosecutor David Moorhouse has told a Sydney court that it might take another 4-6 months to prepare the brief of evidence in a $A165m tax fraud case. Ten people have been charged with a range of offences, including the son and daughter of the Australian Taxation Office’s former deputy commissioner, Michael Cranston. Moorhouse also said the defendants may face additional or amended charges when the brief is completed. Magistrate David Price set a deadline of 13 July to file the completed brief.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN FEDERAL POLICE

ANZ-Roy Morgan Australian Consumer Confidence down 3pts to 116.0 after poor GDP result

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Original article by Roy Morgan
Market Research Update – Page: Online : 14-Mar-18

ANZ-Roy Morgan Australian Consumer Confidence fell 2.5% to 116 in the week ended 11 March, partially unwinding gains over the previous two weeks. The fall was broad-based, with households particularly pessimistic about current financial conditions. Views towards current economic conditions declined 3.5%, partially reversing the previous 5.1% rise. Sentiment around future conditions slipped 1.9%. The future conditions index still remains well above the levels seen for most of 2017, although it has slipped below its long-run average. Households’ pessimism towards financial conditions extended the previous week’s move, with the current and future sub-indices falling 5.5% and 1.0%, bringing them to five and 14-week lows respectively.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Strongest growth predicted since global financial crisis

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Original article by Jacob Greber
The Australian Financial Review – Page: 2 : 14-Mar-18

The OECD has upgraded its economic growth forecast for Australia by 0.2 per cent in 2018, to three per cent, citing factors such as strong growth in jobs and an upturn in non-mining and infrastructure investment. The OECD also expects the Australian economy to expand by three per cent in 2019, which is 0.3 per cent higher than its previous forecast in December. Meanwhile, the OECD expects the global economy to expand by 3.9 per cent, while it forecasts growth in US GDP of 1.5-1.75 per cent in 2018 and 2019 due to the Trump administration’s tax reforms.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Tax grab to hit lowest incomes

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Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 6 : 14-Mar-18

The Federal Opposition claims that abolishing cash refunds for excess dividend imputation credits would primarily affect wealthy individuals and members of self-managed superannuation funds. However, analysis by the Treasury suggests that people whose annual income is less than $A18,200 would be hardest hit, which is estimated to be about 610,000 individuals. In contrast, the reforms would only affect about 5,000 people with annual income of more than $A180,000. Treasurer Scott Morrison has warned that the policy would affect more than a million Australians, including 230,000 pensioners, while the wealthy would continue to gain the full value of their franking credits.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES CONSUMER POLICY CENTRE INCORPORATED, SMSF ASSOCIATION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, CHIFLEY RESEARCH CENTRE

Retailers seek minimum-wage freeze

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Original article by Ewin Hannan
The Australian – Page: 4 : 14-Mar-18

National Retail Association CEO Dominique Lamb says the Fair Work Commission should leave the minimum wage unchanged in 2018, arguing that retailers cannot afford a rise in base wages given the current trading conditions. In contrast, the Australian Chamber of Commerce & Industry has proposed increasing the minimum wage by $A13.20 per week, while the ACTU has pushed for a rise of $A50 a week. Labor in turn has called for an above-inflation increase in the minimum wage.

CORPORATES
NATIONAL RETAIL ASSOCIATION LIMITED, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, ACTU, AUSTRALIAN LABOR PARTY, THE AUSTRALIAN INDUSTRY GROUP

New spy laws still not good enough: Dreyfus

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Original article by Primrose Riordan
The Australian – Page: 2 : 14-Mar-18

Media companies have warned that journalists could still be jailed under draft amendments to the Federal Government’s proposed espionage laws. The amendments would provide limited legal protection for journalists who receive and report on classified information. The media industry’s joint submission argues that journalists would still be required to defend their actions in court. The Opposition’s legal affairs spokesman Mark Dreyfus says the amendments are flawed and will not be supported by Labor.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), AUSTRALIAN ASSOCIATED PRESS PTY LTD, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, WEST AUSTRALIAN NEWSPAPERS HOLDINGS LIMITED

Uber rival GoCatch plans ASX listing

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 23 : 13-Mar-18

Ride-sharing firm GoCatch is seeking to list on the Australian sharemarket in June, and hopes to raise up to $A5 million via an IPO. This is in addition to $A1 million in pre-IPO funds that it aims to raise by the end of March. Backers of GoCatch include fund manager David Paradice. Co-founder Andrew Campbell says GoCatch focuses on providing services to governments and corporations, while he notes that it hopes to break even by June.

CORPORATES
GOCATCH, TAXIMEDIA PTY LTD, UBER AUSTRALIA PTY LTD, CARADVICE.COM.AU PTY LTD, ROYALE LIMOUSINES, NEW SOUTH WALES HIRE CAR ASSOCIATION, SLINGSHOT LIMITED