Author: roymorgansocial

‘Good debt’ to underwrite Future Fund

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Original article by Andrew White
The Australian – Page: 19 & 22 : 1-Sep-17

The Future Fund has posted an annual return of 8.7 per cent for 2016-17, compared with its target return of 6.9 per cent. However, chairman Peter Costello says returns and asset values are likely to be affected by an expected rise in interest rates. He adds that the Federal Government’s decision to postpone drawdowns by five years will allow the sovereign wealth fund to cover all unfunded public sector super liabilities, which are forecast to top $A200bn in 2021. The Government will increase what Treasurer Scott Morrison labels "good" debt to fund super liabilities between 2021 and 2026.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF TASMANIA, QIC LIMITED, PORT OF MELBOURNE

Harvey Norman offers buy-back olive branch

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 28 : 1-Sep-17

Listed furniture and homewares retailer Harvey Norman has posted a 2016-17 after-tax net profit of $A448.9m, which is 29 per cent higher than previously. The group’s underlying net profit was up 15.7 per cent to $A390.8m, while its franchised stores in Australia recorded 5.4 per cent growth in sales, to $A5.6bn. The company’s final dividend has been reduced, although chairman Gerry Harvey has flagged the possibility of a share buyback. Harvey Norman shares closed 7.5 per cent lower at $A4.08 on 31 August.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, DEUTSCHE BANK AG, OWNERSHIP MATTERS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMAZON.COM INCORPORATED

Delay likely for small business waiting on penalty rate trade-off

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Original article by Ewin Hannan
The Australian – Page: 4 : 1-Sep-17

A proposal to allow smaller retailers and fast-food restaurants to scrap penalty rates and overtime pay in return for a 25 per cent increase in base pay has the support of Council of Small Business Australia CEO Peter Strong. However, the Fair Work Commission is not expected to consider permitting a trial of "loaded rates" before the second half of 2018. Strong says unions and employers’ groups that represent large companies are likely to object to the proposal, as many such companies have already traded off Sunday penalty rates in their enterprise agreements.

CORPORATES
COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIA. FAIR WORK COMMISSION, ACTU, AUSTRALIAN LABOR PARTY, AEROCARE OPERATIONS PTY LTD, TRANSPORT WORKERS’ UNION

Corporates finally ramp up capex

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 1-Sep-17

Data from the Australian Bureau of Statistics shows that private-sector companies anticipate capital expenditure of $A101.8bn in 2017-18. This is 17.6 per cent higher than had been forecast three months ago, and compares with analysts’ expectations of $A95.9bn. The figures also show that there was an 0.8 per cent increase in capex during the final quarter of 2016-17. Telstra and Santos are among the companies that have recently announced plans for increased capex in 2017-18.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, TELSTRA CORPORATION LIMITED – ASX TLS, SANTOS LIMITED – ASX STO, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CAPITAL ECONOMICS LIMITED, PERENNIAL VALUE MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Labor tells Coalition on CET: we’re here to help

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 1-Sep-17

The Australian Government is aiming to finalise a Clean Energy Target by the end of 2017. The main hindrance to it doing so is a conservative backbench that wants "clean coal" to be included in the CET. Labor’s energy spokesman Mark Butler has indicated that the party would be willing to accept a CET that includes clean coal, arguably because it knows the chances of any new coal-fired power stations being built are non-existent.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Time is past for banks royal commission policy

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Original article by David Crowe
The Australian – Page: 2 : 1-Sep-17

Australian banks are attracting increased regulatory scrutiny in the wake of the Commonwealth Bank’s money-laundering scandal. This has weakened the Australian Labor Party’s case for a royal commission into banks, as such an inquiry would take some time to set up if Labor wins the next federal election. Meanwhile, Labor may not be able to act on the inquiry’s recommendations until after the following election. Labor increased the Australian Securities & Investments Commission’s regulatory powers when it was previously in government, and it could so again without the need for a royal commission.

CORPORATES
AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Administrators delay Ten report

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Original article by Darren Davidson
The Australian – Page: 22 : 1-Sep-17

Ten Network administrator KordaMentha has postponed the release of a report on the failed TV broadcaster until 4 September. The report was initially slated to be released on 31 August, and the delay will affect the timing of a creditors’ meeting. Ten’s shareholders will not recoup any of their investment if CBS Corporation buys Ten, which has prompted the Australian Shareholders’ Association to consider a class action on behalf of investors.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, CBS CORPORATION, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

BHP scraps grid-power deal with OZ Minerals

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Original article by Matt Chambers
The Australian – Page: 22 : 1-Sep-17

OZ Minerals has warned that power costs at its Prominent Hill gold and copper mine could rise by 2-5 per cent from mid-2020. BHP Billiton has advised that it will end an agreement for OZ to access the Olympic Dam mine’s power transmission infrastructure from August 2020. BHP has indicated that the proposed expansion of Olympic Dam will significantly increase the copper and uranium mine’s electricity requirements, forcing OZ Minerals to seek an alternative source of electricity.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, OZ MINERALS LIMITED – ASX OZL, SANDFIRE RESOURCES NL – ASX SFR

Banks use rules to stifle rivals: Morrison

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 1-Sep-17

Federal Treasurer Scott Morrison says changes to the banking sector’s regulatory regime are needed as established banks are using the existing rules to stymie competition and make it hard for new players to enter the market. He has told a Bloomberg forum that the Federal Government’s proposed regulatory changes are aimed at empowering bank customers. Morrison has also ruled out making the Banking Executive Accountability Regime retrospective.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, BLOOMBERG LP, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN LABOR PARTY

HSBC joins mortgage war with 3.6pc home loan

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Original article by Glenda Korporaal
The Australian – Page: 19 & 22 : 1-Sep-17

HSBC Australia CEO Martin Tricaud says the international bank intends to ramp up its local presence, with plans to expand its branch network from 31 outlets to 47 over the next two years. HSBC also aims to increase its Australian home loans business, with owner-occupiers who take out a mortgage before the end of 2017 to be offered an interest rate of 3.65 per cent. Tricaud says the Australian banking sector offers strong growth potential for HSBC, whose market share is about 1.5 per cent at present.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, HSBC BANK PLC, AUSSIE HOME LOANS LIMITED