Author: roymorgansocial

Half of minimum wage workers are rich

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 8-Feb-18

An analysis of Household Income & Labour Dynamics in Australia data by the Melbourne Institute has concluded that 13 per cent of people on the minimum wage live in households that have the nation’s highest incomes. The analysis suggests that a large proportion people on the minimum wage are students in the 21-34 age group and in many instances live with their parents. The Melbourne Institute also concluded that just 21 per cent of workers live in households for which the minimum wage is the sole source of income.

CORPORATES
UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIAN LABOR PARTY

Use tax cuts to boost wages: ex-BCA boss

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 8-Feb-18

Former Business Council of Australia president Tony Shepherd says employees and shareholders of large companies should directly benefit from any reduction in the corporate tax rate via higher wages and increased dividend payouts. Many large companies in the US have announced wage rises in response to the Trump administration’s tax package. However, Treasurer Scott Morrison and Opposition Leader Bill Shorten have questioned the merits of a "social contract" in Australia if across-the-board corporate tax cuts are passed by federal parliament.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, McDONALD’S AUSTRALIA LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. NATIONAL COMMISSION OF AUDIT

Pay TV exemption for gambling ads riles rival broadcasters

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Original article by Andrew Tillett
The Australian Financial Review – Page: 2 : 8-Feb-18

Free-to-air TV networks have urged the Federal Government to ensure a level playing field regarding its a ban on gambling advertisements during live sports broadcasts. The Australian Subscription Television & Radio Association wants an exemption from the ban for pay-TV sports channels that have low ratings, arguing that they are mainly watched by adults. The proposed exemption, which is outlined in ASTRA’s new draft code of practice for pay-TV, is also opposed by the Greens, the Nick Xenophon Team and Responsible Wagering Australia.

CORPORATES
AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, AUSTRALIAN GREENS, NICK XENOPHON TEAM, RESPONSIBLE WAGERING AUSTRALIA, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, SPORTSBET AUSTRALIA, LADBROKES, CROWNBET PTY LTD, BETFAIR AUSTRALIA PTY LTD

CBA’s half-year profit misses expectations

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Original article by James Frost
The Australian Financial Review – Page: 13 & 16 : 8-Feb-18

The Commonwealth Bank of Australia has posted a 2017-18 interim cash profit of $A4.73bn, which is 1.9 per cent lower than previously. The result was marred by $A575m worth of provisions, including some $A375m associated with Austrac’s investigation into money-laundering allegations. CBA’s cash profit rose 5.8 per cent to $A5.11 billion if the provisions are excluded. Meanwhile, CBA’s retail banking division has reported a cash profit of $A2.653bn, an increase of eight per cent, while its business and private banking division’s cash profit rose by nine per cent to $A960m.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, ARGO INVESTMENTS LIMITED – ASX ARG, PERENNIAL INVESTMENT PARTNERS LIMITED

Elliott’s new push to end BHP dual listing shaky

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Original article by Matt Chambers
The Australian – Page: 20 : 8-Feb-18

A report produced by FTI Consulting on behalf of Elliott Management estimates that the financial benefits of abolishing BHP Billiton’s dual-listed structure could be worth about $US22bn. However, some $US14.1bn of this figure is based on the average performance of other companies that have scrapped dual listings. The report also concludes that shifting to a primary listing in Australia would release some $US8.7bn worth of franking credits, as the proportion of Australian investors on BHP’s share register would rise. BHP’s own cost-benefit analysis shows that scrapping the dual listing would result in costs of $US1.2bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, FTI CONSULTING INCORPORATED

Spy laws: New A-G concedes ground

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Original article by Simon Benson, Nicola Berkovic
The Australian – Page: 1 & 8 : 8-Feb-18

The Federal Government has responded to the media industry’s concerns about its proposed foreign interference laws by agreeing to some safeguards for journalists. Attorney-General Christian Porter has advised that journalists who receive classified information will only face criminal prosecution under certain circumstances, such as if reporting on the information could potentially affect public safety or pose a threat to national security. However, commonwealth officers who leak confidential information will not receive any such exemption.

CORPORATES
AUSTRALIA. ATTORNEY-GENERAL’S DEPT, LAW COUNCIL OF AUSTRALIA, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIAN FEDERAL POLICE, ASHURST AUSTRALIA

Choice urges Hayne focus on unfair fees

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 15 : 8-Feb-18

Consumer group Choice has used its submission to the banking royal commission to urge the inquiry to examine issues such as the use of trailing commissions in the financial services sector and the methods used to calculate fees and charges. Choice has argued that unfair fees is a key issue that the general public would like the royal commission to address. Choice has also criticised the financial services industry’s self-regulation regime, noting the shortcomings of self-regulation for insurers in particular.

CORPORATES
AUSTRALIAN CONSUMERS’ ASSOCIATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Rio tips pay inflation as profits surge

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 20 : 8-Feb-18

Rio Tinto has posted a 2017 underlying profit of $US8.6bn ($A10.9bn), which is 69 per cent higher than previously. The full-year result was boosted by $US4.1bn due to a rise in the prices of key commodities, such as iron ore and coal. Shareholders will receive a second-half dividend of $US1.80 per share, with the full-year payout rising to a record $US2.90 per share. Meanwhile, CEO Jean-Sebastien Jacques says the strong profit growth is likely to prompt employees across Rio Tinto’s global operations to seek wage increases.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS, BLOOMBERG LP

Shaky markets signal more share pain on way

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Original article by David Rogers
The Australian – Page: 17 & 27 : 8-Feb-18

Futures pricing suggests that the US sharemarket will experience further volatility, despite a rebound on 7 February. The bearish investor sentiment of recent days has prompted renewed support for "safe-haven" assets, including US government bonds and currencies such as the yen. Meanwhile, the Chicago Board Options Exchange’s Volatility Index briefly rose above 50 per cent on 7 February, compared with just 11.5 per cent a week earlier. However, Jeremy Lawson of Aberdeen Standard Investments does not expect global sharemarket volatility to be sustained.

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, ABERDEEN STANDARD INVESTMENTS, CREDIT SUISSE AG, BELL ASSET MANAGEMENT LIMITED – ASX BLM, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, FTSE 100 INDEX, NIKKEI 225 INDEX, SHANGHAI COMPOSITE INDEX, HANG SENG INDEX

Do not resuscitate: enterprise bargaining deserves a burial

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Original article by Judith Sloan
The Australian – Page: 12 : 6-Feb-18

The enterprise bargaining system is largely defunct in Australia, with the exception of the public sector and a few private companies. The proportion of employees covered by enterprise agreements has been declining since it peaked in 2010, while the proportion of workers covered by industry awards has risen from 15 per cent to around 25 per cent since then. The Federal Government should pursue reforms such as ensuring that enterprise agreements are no longer allowed to continue beyond their expiry date, because it is almost certain that Labor will seek to revive enterprise bargaining if it wins the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIA. FAIR WORK COMMISSION, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, RETAIL AND FAST FOOD WORKERS UNION INCORPORATED