Author: roymorgansocial

Shareholders to get shale sale cash within two years, says BHP

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Original article by Matt Chambers
The Australian – Page: 27 : 24-Aug-17

BHP Billiton will aim to divest its US shale assets within two years, according to CFO Peter Beaven. CEO Andrew Mackenzie had previously indicated that the assets would be sold "relatively quickly". Beaven also said the proceeds of the sale are likely to be distributed to shareholders. Analysts differ regarding the valuation of the shale assets, with sale price forecasts generally ranging from $US7bn to $US10bn. The shale assets currently have a book value of $US14bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MORGANS FINANCIAL LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, ELLIOTT MANAGEMENT CORPORATION, TUDOR PICKERING HOLT AND COMPANY LLC, ANADARKO PETROLEUM CORPORATION

Seven remains upbeat on China despite exit

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 26 : 23-Aug-17

Listed conglomerate Seven Group Holdings has posted a 2016-17 net profit of $A44.5m, which is 77.4 per cent lower than previously. The result was marred by impairment charges associated with Seven West Media. Seven Group’s EBIT of $A333.3m was 10 per cent higher than previously, and the group forecasts EBIT growth of 5-10 per cent in 2017-18. Meanwhile, Seven has struck a $A540m deal to sell the Chinese division of its WesTrac heavy equipment business to Lei Shing Hong Machinery.

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WESTRAC HOLDINGS PTY LTD, WESTRAC CHINA COMPANY LIMITED, LEI SHING HONG MACHINERY, CATERPILLAR, COATES HIRE LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, GOLDMAN SACHS AUSTRALIA PTY LTD

ATO hails tech giants’ $7b sales surge

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Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 23-Aug-17

Executives from technology companies such as Apple and Google appeared before an inquiry into corporate tax avoidance on 22 August. Apple Australia MD Tony King told the Senate committee that the company has not been penalised following the completion of a five-year audit by the Australian Taxation Office, while IBM, Facebook and Google advised that they are still being audited. Meanwhile, Tax Commissioner Chris Jordan hailed the success of the ATO’s crackdown on tax avoidance by multinationals, noting that it issued $A4bn worth of tax assessments in 2016-17.

CORPORATES
APPLE PTY LTD, AUSTRALIAN TAXATION OFFICE, IBM AUSTRALIA LIMITED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, MICROSOFT AUSTRALIA

APRA can’t be enforcer and supervisor, NAB says

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 23-Aug-17

Banks have raised concerns about the proposed Banking Executive Accountability Regime (BEAR) in submissions to the Federal Government. The role of the Australian Prudential Regulation Authority under the new regime is a particular concern for the banking sector, given that it will have powers to fine banks up to $A200m for non-compliance. National Australia Bank has questioned the appropriateness of APRA having the dual roles of supervising and regulating the bank sector, while the ANZ Bank said more clarity is needed regarding the roles of APRA and the Australian Securities & Investments Commission under the BEAR reforms.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, FINANCE SECTOR UNION, CUSTOMER OWNED BANKING ASSOCIATION, OWNERSHIP MATTERS PTY LTD, AUSTRALIANSUPER PTY LTD

Investor U-turn amid signs the wheels are falling off Trump rally

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Original article by Philip Baker
The Australian Financial Review – Page: 27 : 23-Aug-17

The Dow Jones Industrial Average has gained 18 per cent since the US presidential election in November 2016. However, US investor and hedge fund manager Ray Dalio says the uncertainty surrounding the Trump administration may provide the catalyst for a sharemarket correction. The future of President Donald Trump’s much-touted corporate and personal income tax cuts in particular is uncertain, and a sell-off is likely if the reforms are not passed by Congress.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, DEMOCRATIC PARTY (UNITED STATES), REPUBLICAN PARTY (UNITED STATES)

Google ‘misled’ Senate on revenue

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Original article by Darren Davidson
The Australian – Page: 1 & 2 : 23-Aug-17

Executives from Google and Facebook appeared before a Senate committee on 22 August. Google’s MD for Australia and New Zealand, Jason Pellegrino, told the inquiry into the future of public-interest journalism that the digital giant boasted gross advertising revenue of $1.1bn in Australia in 2016. Senator Nick Xenophon questioned this figure, citing advertising industry estimates which suggest that Google’s annual revenue was around $A3bn. Meanwhile, Facebook said its gross revenue in Australia was $A326m in 2016.

CORPORATES
GOOGLE INCORPORATED, FACEBOOK INCORPORATED, NICK XENOPHON TEAM, MELBOURNE BUSINESS SCHOOL, MORGAN STANLEY AUSTRALIA LIMITED

Union pay rises exploit PM’s code

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Original article by Ewin Hannan
The Australian – Page: 1 & 2 : 23-Aug-17

Master Builders Australia CEO Denita Wawn says pay rates in a proposed new enterprise bargaining agreement in the building industry are "unsustainable" and will increase the cost of federally-funded construction projects. The Construction, Forestry, Mining & Energy Union’s in-principle agreement includes a pay rise of five per cent and higher penalty rates, with penalty rates of up to 300 per cent for working during Christmas and Easter. The new pay deal is aimed at compensating CFMEU members for the removal of union-friendly ­conditions from EBAs in order to comply with the Federal Government’s building code.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, PROBUILD PTY LTD, LEND LEASE GROUP LIMITED – ASX LLC, BORAL LIMITED – ASX BLD, DE MARTIN AND GASPARINI PTY LTD, AUSTRALIA. DEPT OF EMPLOYMENT

Costco to float online and watch pennies fly

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 23-Aug-17

Costco will boast nine stores in Australia when its third store in Sydney opens in late August. The discount retailer intends to compete directly with Amazon.com in the local market, with plans to expand into online retailing within the next 18 months. Costco Australia MD Patrick Noone says the online store will enable the company to target consumers in regional and rural areas who do not have ready access to its warehouse-style outlets. Online sales now comprises 5-6 per cent of Costco’s overall sales in the US.

CORPORATES
COSTCO WHOLESALE AUSTRALIA PTY LTD, COSTCO WHOLESALE CORPORATION, AMAZON.COM INCORPORATED, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, BUNNINGS GROUP LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, MORGAN STANLEY AUSTRALIA LIMITED

BHP pledges dividend windfall

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 23-Aug-17

BHP Billiton has posted a 2016-17 net profit of $US5.89bn, compared with a loss of $US6.34bn previously, while its underlying profit rose from $US1.215bn to $US6.732bn. The resources group reduced its net debt by $US9.8bn during the financial year, to $US16bn. BHP has flagged plans to divest its US shale assets, with CEO Andrew Mackenzie indicating that the sale of individual assets is preferable to an IPO of the entire business. BHP has also ruled out further investment in the Jansen potash project in the near-term.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ELLIOTT MANAGEMENT CORPORATION

ANZ-Roy Morgan Australian Consumer Confidence down for third straight week to 109.2 (down 2.5pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Aug-17

ANZ-Roy Morgan Australian Consumer Confidence fell 2.2% to 109.2 in the week ended 20 August 2017, down from a high of 118.4 only three weeks earlier. The fall in sentiment was broad-based, with four out of five sub-indices posting declines. Households’ views towards current financial conditions slipped 2.1%, following a 2.0% fall previously. Views towards future financial conditions fell a solid 5.3%, more than reversing the prior week’s 1.9% rise. Consumers’ views towards current economic conditions fell 1.5%, the third straight weekly fall. Sentiment around future economic conditions fell a sharp 6.8% last week. While views towards economic conditions have been quite volatile recently, the index is now close to its lowest on record.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ