Author: roymorgansocial

Nine proceeds with caution on cricket rights

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Original article by Darren Davidson
The Australian – Page: 21 : 25-Aug-17

Write-downs resulted in Nine Entertainment Company reporting a 2016-17 net loss of $A203.4m, although its underlying profit was 2.7 per cent higher at $A123.6m. Revenue of $1.24bn was three per cent lower. CEO Hugh Marks says Nine is keen to acquire the rights to the Big Bash League as well as renew its existing cricket broadcasting rights, and he hopes for a swift conclusion to negotiations with Cricket Australia. However, he has cautioned that the subdued advertising market means Nine cannot afford to pay much more than at present for sports broadcasting rights.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, CRICKET AUSTRALIA, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AMAZON.COM INCORPORATED, TWITTER INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, FOXTEL MANAGEMENT PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, BIG BASH LEAGUE

Wage growth is economy’s Achilles heel, warns Moody’s

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 24-Aug-17

Ratings agency Moody’s Investors Service has maintained its stable outlook for Australia’s triple-A credit rating. However, Moody’s says factors such as low growth in wages and rising household debt – which now comprises 123.1 per cent of GDP – represent key risks to the economy. Meanwhile, Moody’s has forecast that state and federal government debt will increase to 42 per cent of GDP in 2017-18, while the firm has questioned whether the Federal Government will be able to limit growth in expenditure over the Budget forward estimates period.

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MOODY’S INVESTORS SERVICE INCORPORATED

Rich pay deal on way to approval

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Original article by Ewin Hannan
The Australian – Page: 4 : 24-Aug-17

The Australian Building & Construction Commission’s preliminary assessment of Probuild’s new enterprise agreement has concluded that it complies with the building code. Employment Minister Michaelia Cash and Master Builders Australia have criticised the pay deal, which includes significantly higher penalty rates. Probuild’s in-principle agreement with the Construction, Forestry, Mining & Energy Union will be submitted for approval by the Fair Work Commission. Cash notes that over 860 enterprise agreements now comply with the building code.

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AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, PROBUILD PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. DEPT OF EMPLOYMENT, MASTER BUILDERS AUSTRALIA INCORPORATED, BORAL LIMITED – ASX BLD, DE MARTIN AND GASPARINI PTY LTD

Tax war moves to smaller companies

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Original article by Nick Tabakoff
The Australian – Page: 4 : 24-Aug-17

The Australian Government will require up to 6,000 listed and private companies to disclose any "contestable" tax treatments in their financial accounts from fiscal 2019. The new disclosure rules, which were released by the Australian Securities and Investments Commission, have prompted criticism from tax experts. Paul Drum of CPA Australia says it is the Government’s latest crackdown in a "tax war" on the business sector, adding that the new rules will apply to both small and large companies

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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CPA AUSTRALIA, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN ACCOUNTING STANDARDS BOARD, BDO CHARTERED ACCOUNTANTS AND ADVISERS

Woolies back in the retail race

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 24-Aug-17

Retail giant Woolworths has posted a 2016-17 net profit of $A1.533bn, following an impairment-marred loss of $A1.234bn for 2016-17. Net profit from continuing operations was down 3.6 per cent at $A1.422bn, but revenue was 3.7 per cent higher at $A55.47bn. Woolworths’ core supermarkets division recorded 4.5 per cent growth in food sales, to $A36.37bn, while the struggling Big W business recorded an EBIT loss of $A150.5m and a 5.6 per cent decline in sales.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, WOOLWORTHS SUPERMARKETS, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, EZIBUY, LOWE’S COMPANIES INCORPORATED, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, WESFARMERS LIMITED – ASX WES, VERTIUM ASSET MANAGEMENT

Pratt chases super money to fuel Visy’s $2b Australian expansion

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Original article by John Stensholt
The Australian Financial Review – Page: 1 & 6 : 24-Aug-17

Visy Industry has revealed plans to expand its Australian cardboard packaging and paper recycling operations at a cost of $A2bn over the next decade. Executive chairman Anthony Pratt will seek financial support from superannuation funds to finance the massive expansion, which he forecasts will generate some 5,000 jobs. Visy will increase its investment in clean energy plants, with the aim of eventually generating about 50 per cent of its electricity it uses. Visy’s US arm Pratt Industries announced a $US2bn investment in its business earlier in 2017.

CORPORATES
VISY INDUSTRIES AUSTRALIA PTY LTD, PRATT INDUSTRIES (USA) INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AMAZON.COM INCORPORATED, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD

Gordon, Murdoch in Ten seat after Oaktree exit

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Original article by Bridget Carter
The Australian Financial Review – Page: 19 : 24-Aug-17

A decision by the Australian Competition & Consumer Commission on whether it would approve the acquisition of Ten Network by Lachlan Murdoch and Bruce Gordon is said to be imminent. They have emerged as the leading contenders to buy Ten following reports that hedge fund Oaktree Capital has withdrawn its offer, which was made jointly with Anchorage Capital Group. Murdoch and Gordon are believed to have offered around $A250m for Ten.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, OAKTREE CAPITAL MANAGEMENT LLC, ANCHORAGE CAPITAL GROUP LLC, PPB ADVISORY, MOELIS AND COMPANY, KORDA MENTHA AND COLLEAGUES PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CREDIT SUISSE (AUSTRALIA) LIMITED, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD

Two strikes rule reining in exec pay

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 24-Aug-17

The Australian Council of Superannuation Investors has released the findings of a survey which shows that the top listed companies have not significantly increased their CEOs’ salaries in the last 10 years. The annual fixed pay of S&P/ASX 100 CEOs has been steady at about $A1.9m, while bonuses have also been relatively steady. ACSI CEO Louise Davidson notes that the trend has coincided with the introduction of the "two strikes" rule.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, STANDARD AND POOR’S 500 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CHALLENGER LIMITED – ASX CGF, MACQUARIE GROUP LIMITED – ASX MQG, JAMES HARDIE INDUSTRIES PLC – ASX JHX, WESTFIELD CORPORATION – ASX WFD, PREMIER INVESTMENTS LIMITED – ASX PMV, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, CSL LIMITED – ASX CSL, FORTESCUE METALS GROUP LIMITED – ASX FMG, QANTAS AIRWAYS LIMITED – ASX QAN

CBA faces $200m-plus class action

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 17 & 21 : 24-Aug-17

Investors who bought shares in the Commonwealth Bank of Australia between 17 August 2015 and 3 August 2017 will be eligible to participate in a proposed class action over the bank’s money-laundering scandal. CBA’s share price has fallen by six per cent since Austrac filed legal action on 3 August, slashing the bank’s market capitalisation by around $A8bn. Maurice Blackburn’s class action is expected to focus on CBA’s disclosures regarding Austrac’s investigation into the money-laundering allegations.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MAURICE BLACKBURN PTY LTD, IMF BENTHAM LIMITED – ASX IMF, FEDERAL COURT OF AUSTRALIA, COMMINSURE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, VELOCITY TRADE LIMITED, FITCH RATINGS LIMITED

Wild ride for majors as profit season unfolds

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Original article by David Rogers
The Australian – Page: 27 : 24-Aug-17

The August 2017 reporting season has prompted large movements in the shares of some blue-chip stocks. Data from Bloomberg shows that 30 companies in the benchmark S&P/200 Index have experienced share price movements of at least five per cent on the day their latest financial results were released. AMP Capital’s Shane Oliver notes that a similar number of stocks have outperformed and underperformed the market, although investors have tended to react more savagely than usual to stocks that failed to meet earnings expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, BLOOMBERG LP, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, TELSTRA CORPORATION LIMITED – ASX TLS, HEALTHSCOPE LIMITED – ASX HSO, ACONEX LIMITED – ASX ACX, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SIRTEX MEDICAL LIMITED – ASX SRX, WOOLWORTHS LIMITED – ASX WOW, MONADELPHOUS GROUP LIMITED – ASX MND, THE A2 MILK COMPANY LIMITED – ASX A2M, VIRTUS HEALTH LIMITED – ASX VRT, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, McMILLAN SHAKESPEARE LIMITED – ASX MMS, AVEO GROUP – ASX AOG, BEACH POINT CAPITAL MANAGEMENT LP, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG