Author: roymorgansocial

ATO eyes legal fight against BHP, Rio hubs

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Original article by Nick Tabakoff
The Australian – Page: 17 & 20 : 5-Dec-17

Tax commissioner Chris Jordan says the Australian Taxation Office may take BHP Billiton and Rio Tinto to court over their use of Singapore marketing hubs. Jordan claims that the use of such hubs is reducing Australia’s tax base, and getting some "judicial guidance" on their use may be the best way forward. BHP and Rio Tinto are both embroiled in large tax disputes with the ATO over their use of the marketing hubs.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Thompson urged to follow BHP boss with listening tour

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Original article by Peter Ker
The Australian Financial Review – Page: 32 : 5-Dec-17

Simon Thompson, the former head of base metals at Anglo American, will succeed Jan du Plessis as chairman of Rio Tinto in March 2018. Thompson has been on Rio’s board since 2014. Rob Penaloza of Aberdeen Asset Management says he will be interested to hear more about Thompson’s priorities and see how his approach to the role will differ to that of his predecessor. Penaloza also suggests that Thompson should hold talks with shareholders before taking up his new role.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, NEWMONT MINING CORPORATION, SANDVIK AB, XTREAMLOK PTY LTD, TULLOW OIL PLC

Unions block docks with cars, share bikes

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Original article by Ewin Hannan
The Australian – Page: 1 & 8 : 5-Dec-17

Maritime Union of Australia supporters are defying a court order to end a picket of Victorian International Container Terminal at Webb Dock in Melbourne. Trucks are being prevented from accessing the site, with roads being blocked with a range of objects. The blockade has been in place since late November, preventing access to more than 1,000 shipping containers of consumer goods and medical supplies. The dispute arose after the MUA alleged that VICT refused to provide one of its members with shifts at the site. VICT contends that the worker does not have a maritime security identification card.

CORPORATES
MARITIME UNION OF AUSTRALIA, VICTORIAN INTERNATIONAL CONTAINER TERMINAL PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, ELECTRICAL TRADES UNION, NATIONAL UNION OF WORKERS, AUSTRALIAN RAIL, TRAM AND BUS INDUSTRY UNION, AUSTRALIA. DEPT OF EMPLOYMENT, VICTORIA POLICE

Banks inquiry top concern of US investors

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Original article by Michael Roddan
The Australian – Page: 21 : 5-Dec-17

Shares in Australia’s major banks have fallen in the wake of the Federal Government’s decision to hold a royal commission into the sector. Westpac CEO Brian Hartzer says the issue of a royal commission has been a key concern for US investors in recent weeks. Meanwhile, the Opposition and the Australian Greens have urged the Government to broaden the inquiry’s terms of reference.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE TREASURY

Dual-citizenship debacle catches up with Shorten

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Original article by Rosie Lewis, Rachel Baxendale, David Crowe
The Australian – Page: 1 & 6 : 5-Dec-17

Documents released on 4 December reveal that Labor Senator Katy Gallagher remained a UK citizen two months after nominations for the 2016 federal election closed. National Party leader Barnaby Joyce, who had to re-contest the seat of New England after being forced to resign over his dual citizenship, has accused Opposition Leader Bill Shorten of being a big hypocrite over the issue. Joyce noted that Shorten had claimed that no Labor MP would become embroiled in the dual-citizenship saga.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, HIGH COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, COURT OF DISPUTED RETURNS, LIBERAL PARTY OF AUSTRALIA

Rebound in wage data offers glimmer of hope

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 5-Dec-17

Data from the Australian Bureau of Statistics shows that wages in the private sector rose by 1.1 per cent quarter-on-quarter during the three months to September, and 2.5 per cent year-on-year. Data on public sector wage growth will be released with the national accounts on 6 December. However, the latest data suggests that the Reserve Bank will have scope to increase the cash rate if the recent growth in wages is sustained. Craig James of CommSec expects an interest rate rise in late 2018.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, COMMONWEALTH SECURITIES LIMITED, AUSTRALIA. FAIR WORK COMMISSION, GOLDMAN SACHS AUSTRALIA PTY LTD

House prices to fall further: economists

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 6 : 5-Dec-17

UBS says the Reserve Bank of Australia is unlikely to reduce official interest rates in the near-term, despite data showing that house prices in Sydney fell by 1.3 per cent in the three months to November. UBS notes that in the past the RBA has frequently reduced the cash rate in response to a sharp fall in house prices. The firm adds that a further downturn in house prices is likely. Meanwhile, LF Economics expects the royal commission into the banking sector to have a significant impact on house prices.

CORPORATES
UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, LF ECONOMICS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ACCC to investigate advertising secrets of Google and Facebook

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Original article by Darren Davidson
The Australian – Page: 17 & 28 : 5-Dec-17

Australian Competition & Consumer Commission chairman Rod Sims is confident that it has sufficient powers to investigate the market power of digital platforms such as Google and Facebook. He says the ACCC’s inquiry into the impact of digital platforms on competition in media and advertising markets is likely to take around 18 months, with the Federal Government to receive a preliminary report on its findings within 12 months. Sims adds that the ACCC will seek input from all parties affected by the growing market dominance of digital players.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, WPP PLC, GROUPM COMMUNICATIONS PTY LTD

US tax cuts may trigger as good as it gets sell-off

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Original article by David Rogers
The Australian – Page: 28 : 5-Dec-17

Tobias Levkovich of Citigroup still expects the S&P 500 to be trading at 2,675 points in December 2018, despite the passage of President Donald Trump’s tax cuts package. Citi’s forecast for the S&P 500 will be increased by just 3.7 per cent if the US corporate tax rate is reduced to 20 per cent. The firm believes that investors may choose to take profits if the tax rate is cut to 20 per cent, upon expectations that the market will not rise any further.

CORPORATES
STANDARD AND POOR’S 500 INDEX, CITIGROUP INCORPORATED

Cash-only hot spots in sights of ATO

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Dec-17

The Australian Taxation Office is currently targeting areas of the nation that have a lot of cash-only businesses. Such areas include Glenelg in South Australia and Sunnybank in Brisbane, with businesses being investigated including hairdressers and beauty parlours. The areas in question often have high immigrant numbers, and ATO Commissioner Chris Jordan, says Chatswood in Sydney could be one area for future targeting. The ATO’s crackdown on the cash economy has already netted it $A200 million in unpaid tax.

CORPORATES
AUSTRALIAN TAXATION OFFICE