Author: roymorgansocial

Mitsui offer for AWE deemed fair

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 22-Feb-18

AWE Limited has posted a 2017-18 interim net loss of $A23.8m, although its underlying loss narrowed from $A11.5m previously to just $A5.3m. Meanwhile, an independent expert’s report by Grant Thornton has concluded that the $A602m takeover offer from Japan-based Mitsui is "fair and reasonable". The firm values AWE’s shares at between $A0.78 and $A1.06, compared with Mitsui’s offer of $A0.95 per share. RBC Capital Markets says Mineral Resources and China Energy Reserve & Chemical Group are unlikely to make new offers for AWE.

CORPORATES
AWE LIMITED – ASX AWE, GRANT THORNTON AUSTRALIA, MITSUI AND COMPANY LIMITED, RBC CAPITAL MARKETS, MINERAL RESOURCES LIMITED – ASX MIN, CHINA ENERGY RESERVE AND CHEMICAL GROUP COMPANY LIMITED, LATTICE ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT

Discounts put $1b hole in Fortescue’s earnings

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 22-Feb-18

Fortescue Metals Group has posted a 2017-18 interim net profit of $US681m. It is 44 per cent lower than previously but exceeded analysts’ expectations. Fortescue’s received prices for iron ore fell by 15 per cent over the period, and the widening gap between lower-grade ore and the price of benchmark ore reduced its underlying EBITDA by $US734m. Shareholders will receive an interim dividend of $A0.11 per share, compared with analysts’ forecasts for a payout of $A0.14 per share.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, SHAW AND PARTNERS LIMITED

Shock AWU claims: detective breaks silence on fraud scandal

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Original article by Andrew Burrell
The Australian – Page: 1 & 2 : 22-Feb-18

Former Western Australian major fraud squad detective David ­McAlpine headed a two-year investigation into an Australian Workers’ Union slush fund in the late 1990s. He says the WA Director of Public Prosecutions ordered him to cease the investigation shortly before he was slated to travel to Melbourne and executive a series of search warrants concerning the use of money from the slush fund. He also says former executives of Thiess may have misled the trade union royal commission regarding payments that the construction firm made to AWU officials for the slush fund.

CORPORATES
AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN WORKERS’ UNION – WORKPLACE REFORM ASSOCIATION INCORPORATED, THIESS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, WESTERN AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS, WESTERN AUSTRALIAN POLICE SERVICE, SLATER AND GORDON LIMITED – ASX SGH, MELBOURNE WATER CORPORATION

ATO cracks down on other work-related deductions

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Original article by Frank Chung
News.com.au – Page: Online : 22-Feb-18

The Australian Taxation Office has signalled its intention to target tax deductions for dubious work-related expenses in 2018. ATO assistant commissioner Kath Anderson says workers claimed a record $A7.9bn worth of deductions for "other" work-related expenses in 2017. She says many people attempt to claim a tax deduction for private expenses and pass it off as a work expense. She stresses the importance of keeping records of legitimate work-related expenses.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL

Wages growth higher among public sector

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Original article by Adam Creighton
The Australian – Page: 4 : 22-Feb-18

The Australian Bureau of Statistics’ wage price index data shows that wages in the private sector rose by 1.9 per cent in 2017, compared with 2.4 per cent growth for public sector wages. The mining sector had the lowest growth in wages, at 1.4 per cent, while retail industry wages rose by just 1.6 per cent and wages in the healthcare sector increased by 2.7 per cent. There was 2.1 per cent growth in wages overall during the calendar year, including 0.6 per cent growth in the December quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY, CAPITAL ECONOMICS LIMITED, INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Wesfarmers in push for tax cuts

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Original article by Eli Greenblat
The Australian – Page: 17 & 27 : 22-Feb-18

Wesfarmers has posted a 2017-18 interim net profit of $A212m, which is 86.6 per cent lower than previously. Group revenue rose 2.8 per cent to $A35.9bn, while Bunnings’ revenue in Australia and New Zealand was 10.2 per cent higher at $A6.566bn. Supermarket chain Coles posted revenue of $A19.978bn, which is in line with the previous corresponding period. Wesfarmers CEO Rob Scott has called for corporate tax cuts to ensure that Australian companies are globally competitive, adding that a lower tax rate will ultimately boost wages.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, COCA-COLA AMATIL LIMITED – ASX CCL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Cormann to pound company tax drum

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 22-Feb-18

The Federal Government’s company tax package requires the support of the majority of Senate crossbenchers. Acting Prime Minister Mathias Cormann has written to the 11 crossbenchers urging them to vote in favour of the tax package. The proposal to progressively reduce the tax rate for all companies from 30 per cent to 25 per cent has the support of Liberal Democrats senator David Leyonhjelm, who argues that it should in fact be reduced to 20 per cent. Meanwhile, a report from the International Monetary Fund has highlighted the economic benefits of reducing the company tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL DEMOCRATIC PARTY, INTERNATIONAL MONETARY FUND, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN CONSERVATIVES, WOOLWORTHS GROUP LIMITED – ASX WOW, BHP BILLITON LIMITED – ASX BHP, WESFARMERS LIMITED – ASX WES, QANTAS AIRWAYS LIMITED – ASX QAN

Burgeoning ETF industry brings active funds management to the masses

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Original article by David Rogers
The Australian – Page: 27 : 22-Feb-18

Exchange-traded funds are becoming increasingly popular with Australian investors. There has been strong growth in the number of listed active ETFs in particular since 2015, with 16 such funds now listed on the local sharemarket. BetaShares has launched two new active ETFs in a co-branding arrangement with Legg Mason, and BetaShares MD Alex Vynokur says this trend is likely to continue. He adds that institutional investors as well as retail investors are driving the demand for active ETFs.

CORPORATES
BETASHARES CAPITAL LIMITED, BETASHARES LEGG MASON EQUITY INCOME FUND (MANAGED FUND) – ASX EIN, BETASHARES LEGG MASON REAL INCOME FUND (MANAGED FUND) – ASX RIN, LEGG MASON ASSET MANAGEMENT AUSTRALIA LIMITED, AMP CAPITAL INVESTORS LIMITED

Hywood seeks cuts as Fairfax print sales fall

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Original article by Dana McCauley
The Australian – Page: 17 & 21 : 22-Feb-18

Fairfax Media has posted a 2017-18 interim net profit of $A38.5m, which is 54 per cent lower than previously. Underlying net profit fell 10 per cent to $A76.3m and revenue was down four per cent at $A877m. The Australian Metro Media division’s print advertising revenue and circulation revenue were down 13.4 per cent and 3.9 per cent respectively. Fairfax reduced costs by 11 per cent during the half-year, and CEO Greg Hywood says the group will seek further cost cuts. He also says Fairfax will be open to mergers and acquisitions, while it intends to sell or discontinue 28 print publications in New Zealand.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, METRO MEDIA PUBLISHING PTY LTD, STUFF LIMITED, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Big employers pile on the pressure over company tax

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Original article by Simon Benson
The Australian – Page: 4 : 21-Feb-18

The retail industry has urged the Senate crossbenchers to support the Federal Government’s legislation to reduce the company tax rate from 30 per cent to 25 per cent. The Australian Retailers Association’s executive director Russell Zimmerman says the nation’s high corporate tax rate hinders the ability of retailers to hire additional staff and increase wages, while Woolworths CEO Brad Banducci says a lower tax rate would enable the company to increase its investment in its Australian business. The National Retail Association argues that a lower tax rate would result in the creation of more entry-level jobs in the sector.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, WOOLWORTHS GROUP LIMITED – ASX WOW, NATIONAL RETAIL ASSOCIATION LIMITED, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT