Author: roymorgansocial

Accusations ‘will hinder’ Crown probe

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 19-Oct-17

Justice Minister Michael Keenan says AUSTRAC will investigate allegations that casino operator Crown Resorts has breached anti-money laundering laws. However, law enforcement officials have expressed concern that any case against Crown could be jeopardised after independent MP Andrew Wilkie raised the allegations in parliament. Amongst other things, he said former Crown employees had claimed that the company’s casino in Melbourne has evaded financial transaction laws and modified its poker machines to ensure lower payouts.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, VICTORIAN COMMISSION FOR GAMBLING AND LIQUOR REGULATION

Cash plan to dam union ‘rivers of gold’

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Original article by Ewin Hannan
The Australian – Page: 6 : 19-Oct-17

The Federal Government’s Proper Use of Worker Benefits Bill will be put before parliament on 19 October. The bill is aimed at preventing worker entitlement funds – which boast assets of about $A2bn – from making payments to either unions or employers. Some 14 unions have received an average of $A25m annually from worker entitlement funds over the last five years. Meanwhile, a bill that would enable the Government to block mergers between unions has been put on hold, as some senate crossbenchers have concerns about it.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, NICK XENOPHON TEAM, LIBERAL DEMOCRATIC PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIAN ELECTORAL COMMISSION, AUSTRALIA. FAIR WORK COMMISSION

BHP guidance for iron ore unchanged

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Original article by Timothy Moore, James Thomson
The Australian Financial Review – Page: 15 : 19-Oct-17

BHP Billiton has advised that it produced 64 million tonnes of iron ore in the September 2017 quarter, which is four per cent lower than the same period in 2016. However, BHP still expects iron ore production to be within the range of 275 and 280 million for 2017-18. Meanwhile, copper production rose by 14 per cent to 404,000 tonnes during the quarter, while petroleum production was down eight per cent to 50 million barrels of oil equivalent.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RBC CAPITAL MARKETS, ELLIOTT MANAGEMENT CORPORATION

Housing affordability gets worse

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Original article by Michael Roddan
The Australian – Page: 20 : 19-Oct-17

A report from credit ratings agency Moody’s has warned that housing affordability has continued to decline across Australia. The firm estimates that mortgage repayments now account for 28.7 per cent of the average Australian couple’s monthly income, compared with 27.4 per cent in September 2016. Meanwhile, a survey by Fitch Ratings shows that just 34 per cent of bond investors regard a housing downturn as the biggest risk to the Australian economy, compared with nearly 50 per cent in 2016.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, FITCH RATINGS LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ASX’s $100b rally could be far from over, analysts predict

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Original article by Jessica Sier, Patrick Commins
The Australian Financial Review – Page: 13 & 27 : 19-Oct-17

The Australian sharemarket had been range-bound since May, but a rally in the last nine trading sessions has increased its capitalisation by about $A100bn. JP Morgan’s Jason Steed says the near-term outlook for the local bourse will depend to a large extent on financial and mining stocks, which dominate the market. However, Steed adds that investors are looking for greater political certainty, particularly with regard to issues such as energy policy and regulation of the banking sector.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TOKYO STOCK PRICE INDEX, DEUTSCHER AKTIEN INDEX

Labor open to a deal on energy

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 19-Oct-17

The Australian Government’s proposed National Energy Guarantee will require the support of the federal Opposition and the Labor-led state governments. Shadow treasurer Chris Bowen says federal Labor is willing to consider the energy plan when the Government provides more detail regarding the policy. Some business leaders have expressed support for the National Energy Guarantee, while Origin Energy has indicated that its Eraring coal-fired power station could potentially keep operating if the policy is implemented.

CORPORATES
AUSTRALIAN LABOR PARTY, ORIGIN ENERGY LIMITED – ASX ORG, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN ENERGY COUNCIL, AUSTRALIAN ENERGY REGULATOR, AUSTRALIAN ENERGY MARKET COMMISSION, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Rio Tinto and former bosses charged with fraud by US regulator over Mozambique coal

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Original article by Michael Janda
abc.net au – Page: Online : 19-Oct-17

Rio Tinto and former CEO Tom Albanese will contest the fraud charges that have been filed against them in the US. The Securities & Exchange Commission will contend that Albanese and ex-CFO Guy Elliott deliberately concealed the true value of a Mozambique coal project for which Rio Tinto had paid $US3.7bn in 2011. The SEC will allege that Rio only disclosed the real value of the coal assets after an executive informed chairman Jan du Plessis of the valuation discrepancy in early 2013. Rio Tinto subsequently wrote down the value of the assets by $US3bn and sold the project for just $US50m in 2014.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, RIVERSDALE MINING LIMITED, RIO TINTO COAL MOZAMBIQUE, VEDANTA RESOURCES PLC, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Business gets two-year tax cut amnesty

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 19-Oct-17

The Federal Government has introduced legislation to clarify whether a company qualifies for the 27.5 per cent tax rate for small businesses. It hopes to end the uncertainty regarding the application of the lower tax rate to passive investment companies. The amendments introduced on 18 October state that a company will not qualify for the lower tax rate if it derives more than 80 per cent of its income from passive sources, which include interest and dividends. The new test for a passive investment company will apply from the start of the current financial year.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN TAXATION OFFICE, BDO CHARTERED ACCOUNTANTS AND ADVISERS, CPA AUSTRALIA

Sydney prices to rise ‘4 to 8pc’ in 2018: SQM

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 30 : 19-Oct-17

Data from CoreLogic shows that house prices in Sydney recorded growth of 8.5 per cent in the year to September 2017. However, SQM Research has forecast growth of just 4-8 per cent in 2018, assuming that economic growth remains steady and interest rates are unchanged. House prices are forecast to rise by 7-12 per cent in Melbourne and 3-7 per cent in Brisbane, while Hobart will record house price growth of 8-13 per cent.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, SQM RESEARCH PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Taxpayers to ‘lose billions on NBN’

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Original article by Adam Creighton
The Australian – Page: 1 & 2 : 18-Oct-17

Infrastructure bodies such as Infrastructure Australia need more power and greater budgets to scrutinise the costs and feasibility of major government projects. This is the collective view of Gary Banks, Fred Hilmer and Brendan Lyons. Lyons is about to leave his role as head of Infrastructure Partnerships Australia, Banks was the first chairman of the Productivity Commission, and Hilmer was an adviser to the Keating government. Banks and Hilmer both predict that the $A49 billion National Broadband Network will be sold at a loss, while they both suggest there was no evidence of any cost analysis before the Federal Government announced its Snowy Hydro expansion plan.

CORPORATES
INFRASTRUCTURE AUSTRALIA, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, NBN CO LIMITED