Author: roymorgansocial

Turnbull takes credit for jobs boom

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Original article by David Uren
The Australian – Page: 1 & 2 : 15-Dec-17

The Australian workforce has increased by 3.2 per cent in the last year, which is the fastest rate of growth since early 2008. Some 440,000 jobs have been created since September 2016, including 62,000 in November 2017, and Prime Minister Malcolm Turnbull notes that the labour market had not previously grown for 14 months successive months since 1994. He has attributed the strong jobs growth to the Coalition’s policies, although Labor employment spokesman Brendan O’Connor argues that the underemployment rate remains close to its record high.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LATROBE COMMUNITY HEALTH SERVICE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC

Myer profit warning a present for Lew

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Original article by Eli Greenblat
The Australian – Page: 20 : 15-Dec-17

Solomon Lew might be more likely to get support for his push for an extraordinary general meeting of Myer shareholders after the department store chain issued another profit warning on 14 December. Lew is Myer’s largest shareholder through Premier Investments, and he has been attacking the Myer board for some months over what he claims is its flawed business strategy. Myer’s shares fell to a record low after it revealed that sales for the last two weeks were down five per cent.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, OROTONGROUP LIMITED – ASX ORL, VERTIUM ASSET MANAGEMENT, LIVE CLOTHING, LOVER

Oil Search reassures on Alaskan project funding

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 15-Dec-17

Oil Search CEO Peter Botten says a recent $US400m deal to acquire stakes in several oil fields in Alaska was necessary due to the expected long delay in commencing each phase of its LNG project in Papua New Guinea. He has stressed that the investment in Alaska will have no impact on its commitment to the PNG LNG project. He has also indicated that Oil Search will not need to undertake an equity raising to finance either project.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, REPSOL SA

Stronger economy to cut size of deficit

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Original article by David Uren, Joe Kelly, John Ross
The Australian – Page: 2 : 15-Dec-17

The Federal Government’s May 2017 Budget had forecast a total deficit of $A46bn over four years. However, Westpac economists Bill Evans and Andrew Hanlan expect the mid-year budget update to revise this down to $A40bn. Westpac also forecasts a deficit of $A1.5bn in 2019-20, followed by a modest surplus in 2020-21. Meanwhile, Prime Minister Malcolm Turnbull has signalled that higher education funding will not be reduced in the budget update, although he has flagged new savings measures after the government’s proposed university funding cuts were rejected by the Senate.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, THE GROUP OF EIGHT LIMITED, GRATTAN INSTITUTE

Westpac legal team casts doubt on ASIC evidence

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Original article by James Frost
The Australian Financial Review – Page: 19 : 15-Dec-17

Closing arguments in the Australian Securities & Investment Commission’s bank bill swap rate rigging case against Westpac continue to be heard in the Federal Court. Matthew Darke SC, appearing for Westpac, told the court that it was wrong for ASIC to claim that the evidence it had presented was "gilt edged". He added that many of the comments of Westpac traders that were recorded on tapes and transcripts are open to interpretation. A decision on the case could potentially by delayed until April 2018.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Investors expect US rate hike path to slow

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Original article by Karen Maley
The Australian Financial Review – Page: 24 : 15-Dec-17

Financial markets had generally expected the US Federal Reserve to increase interest rates in December, but Federal Open Market Committee members Charles Evans and Neel Kashkari voted against tightening monetary policy. The latter had also voted against the previous rate increases in March and June, although Evans had been expected to vote in favour of a rate rise. Meanwhile, the Federal Reserve still expects inflation to remain below its target of two per cent until 2019, while it has reiterated its expectations of three rate rises in 2018.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, FEDERAL RESERVE BANK OF MINNEAPOLIS

Jobs surge supports RBA’s growth forecasts

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Original article by David Rogers
The Australian – Page: 27 : 15-Dec-17

The latest jobs data may strengthen the case for the Reserve Bank of Australia to begin lifting the cash rate in late 2018. Some 62,000 jobs were created in November, and 383,000 in the last year, while the unemployment rate was steady at 5.4 per cent. The Australian Bureau of Statistics data also supports the central bank’s view that economic growth will be above its trend rate in 2018. However, Tom Kennedy of JP Morgan says the RBA is likely to keep interest rates on hold while the unemployment rate remains at its current level, while George Tharenou of UBS does not expect a rate rise until 2019.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Failed BP deal won’t hit Woolworths’ refit plans

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 15-Dec-17

The Australian Competition & Consumer Commission has blocked the sale of Woolworths’ fuel business to BP on the grounds that it would likely push up petrol prices and reduce competition. Woolworths CEO Brad Banducci said he was disappointed by the ACCC’s decision. Woolworths was due to receive $A1.8 billion if the transaction had gone ahead, with some of the funds expected to be used on an upgrade of Woolworths’ supermarkets. Banducci said the ACCC’s decision should not impact on any refurbishment program.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, BP AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, UBS HOLDINGS PTY LTD, SHERPA, YELLO, COLES SUPERMARKETS AUSTRALIA PTY LTD, AIRTASKER PTY LTD, AMAZON.COM INCORPORATED

CBA’s terror breaches after lawsuit

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Original article by Nicola Berkovic, Michael Roddan
The Australian – Page: 1 & 2 : 15-Dec-17

Austrac filed an amended statement of claim against the Commonwealth Bank of Australia on 14 December, alleging that there have been further breaches of anti-money laundering and terrorism financing laws since it first launched legal action against the bank. The new allegations include claims that CBA allowed money to be withdrawn from a bank account even though there were suspicions that the account-holder had links to terrorism. CBA has admitted to more than 53,000 of the breaches of money-laundering laws that Austrac had alleged in its original statement of claim.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Tatts all folks: Tabcorp wins bid

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 : 13-Dec-17

Some 98.64 per cent of Tatts Group shareholders voted in favour of a merger with Tabcorp Holdings at a scheme of arrangement meeting on 12 December. The enlarged Tabcorp will boast a market capitalisation of about $A11bn and pro-forma annual revenue of $A5bn. Tatts’ outgoing CEO Robbie Cooke noted at its last AGM that the gaming and lotteries group’s market value has risen by $A2.5bn since he took the helm five years ago. Tatts chairman Harry Boon will join the Tabcorp board.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, LADECO AIRLINES, GVC CORPORATION