Author: roymorgansocial

Fund managers wind back expectations and hoard a little extra cash

roymorgansocial Leave a comment

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

Bank of America Merrill Lynch’s latest survey of fund managers shows that just 33 per cent expect a rise in global corporate profits in the next 12 months, compared with 58 per cent in February 2017. Chief investment strategist ­Michael Hartnett says the survey provides a "warning sign" of the likely performance of shares against bonds, as well as cyclical stocks against defensive stocks. The survey also found that the average cash balance of the 174 respondents is now 4.9 per cent, compared with an average of 4.5 per cent over the last decade.

CORPORATES
BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, STANDARD AND POOR’S 500 INDEX, MSCI WORLD INDEX, STANDARD AND POOR’S ASX 200 INDEX, NASDAQ, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

Domino’s boss red-faced at missed target

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 25 : 16-Aug-17

Domino’s Pizza Enterprises has posted a lower-than-forecast 2016-17 underlying net profit of $A118.5m. The result was 29 per cent higher than previously, compared with guidance of 32.5 per cent growth. Same-store sales growth in Australia and New Zealand fell from 17.4 per cent in the first half to 10 per cent in the second half, and Domino’s has flagged growth of just eight per cent in 2017-18. Domino’s has flagged net profit growth of around 20 per cent in 2017-18.

CORPORATES
DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, DEUTSCHE BANK AG, WATERMARK FUNDS MANAGEMENT PTY LTD

Rumour mill picks candidates to replace Narev

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 8 : 16-Aug-17

Brian Johnson of CLSA says the Commonwealth Bank of Australia may need to select an external candidate to succeed CEO Ian Narev, as the money-laundering scandal has tainted internal contenders. Matt Comyn and Rob Jesudason were widely regarded as leading candidates from within CBA’s ranks prior to the scandal. Former Westpac executive Rob Whitfield, Royal Bank of Scotland CEO Ross McEwan and Medibank CEO Craig Drummond are seen as potential external candidates to replace Narev when he steps down by mid-2018.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CLSA AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, ROYAL BANK OF SCOTLAND GROUP PLC, MEDIBANK PRIVATE LIMITED – ASX MPL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NEW SOUTH WALES. THE TREASURY, REGAL FUNDS MANAGEMENT PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Santos deflated by $880m in impairments

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 19 : 16-Aug-17

Santos has advised that its 2017 half-year accounts will include after-tax impairment charges totalling $US690m ($A880m). This includes a $US870m write-down in the value of its 30 per cent stake in the Gladstone LNG project, which was prompted by a downgrade in the group’s oil price assumptions for the next five years. The write-downs will be offset by a $US330m after-tax write-back associated with its Cooper Basin assets. Deutsche Bank expects Santos to post an underlying interim net profit of $US121.6m.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, DEUTSCHE BANK AG, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, AWE LIMITED – ASX AWE, RBC CAPITAL MARKETS, MACQUARIE GROUP LIMITED – ASX MQG, ENGIE SA

Iluka revealed its own bribery scandal

roymorgansocial Leave a comment

Original article by Nick McKenzie, Richard Baker
The Australian Financial Review – Page: 1 & 10 : 16-Aug-17

Mineral sands miner Iluka Resources is the latest Australian company to become caught up in a bribery probe. The allegations centre on Sierra Rutile, which Iluka acquired in 2016, and Iluka informed international authorities as soon as it became aware of the potential scandal. Amongst other things, it has been alleged that former Sierra Rutile CEO John Sisay facilitated the payment of bribes to government officials in Sierra Leone to obtain mining licences that were subsequently transferred to Iluka. Sisay is seeking to become the next president of Sierra Leone.

CORPORATES
ILUKA RESOURCES LIMITED – ASX ILU, SIERRA RUTILE LIMITED, FREEHILLS PTY LTD, GREAT BRITAIN. SERIOUS FRAUD OFFICE, RIO TINTO LIMITED – ASX RIO, CIMIC GROUP LIMITED – ASX CIM, GETAX AUSTRALIA PTY LTD, SUNDANCE RESOURCES LIMITED – ASX SDL, SMEC AUSTRALIA PTY LTD, TENIX PTY LTD, UNIVERSITY OF LONDON, IMATRIX 101 LIMITED

Hanson deal on media laws

roymorgansocial Leave a comment

Original article by Rosie Lewis, Darren Davidson, Primrose Riordan
The Australian – Page: 1 & 3 : 16-Aug-17

The Federal Government has agreed to a number of concessions to secure One Nation’s support for its cross-media ownership reforms in the Senate. Amongst other things, the ABC and SBS will be required to disclose the salaries of their highest-paid staff, while the ABC Act will be amended to include the requirement that the public broadcaster’s news coverage is "fair and balanced". The support of the Nick Xenophon Team for the media bill will be crucial, given that the Greens have rejected the One Nation reforms.

CORPORATES
ONE NATION PARTY, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS), NICK XENOPHON TEAM, AUSTRALIAN GREENS, AUSTRALIAN CONSERVATIVES, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE

Trump’s bid for Sydney casino killed off by his ‘mob connections’

roymorgansocial Leave a comment

Original article by Tessa Akerman, Michael McKenna, Troy Bramston, Emily Ritchie
The Australian – Page: 1 & 6 : 16-Aug-17

A consortium comprising Donald Trump and Kern Corporation submitted one of four bids to develop Sydney’s first casino in the 1980s. Cabinet minutes from May 1987 show that the New South Wales Police Board had recommended that the Trump consortium’s bid should be rejected. Amongst other things, the confidential report expressed concern about Trump’s alleged links to the mafia. A separate report by the Canadian Imperial Bank of Commerce Australia questioned whether the Trump bid was financially viable. Two of the other bidding consortiums also failed the police probity checks.

CORPORATES
KERN CORPORATION LIMITED, NEW SOUTH WALES POLICE BOARD, CANADA IMPERIAL BANK OF COMMERCE, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN FEDERAL HOTELS, SABEMO (NSW) PTY LTD, GENTING BERHAD, CIVIL AND CIVIC PTY LTD

CFMEU loss as bench rules code-compliant deal OK

roymorgansocial Leave a comment

Original article by Ewin Hannan
The Australian – Page: 2 : 16-Aug-17

The Fair Work Commission has ruled that Lendlease Engineering’s enterprise bargaining agreement in New South Wales is valid. The Construction, Forestry, Mining & Energy Union had appealed against the FWC’s June 2017 decision to approve the EBA, which complies with the Federal Government’s building code. Employment Minister Michaelia Cash has urged the CFMEU to negotiate code-compliant EBAs. Cash also wants union mergers to be subject to a public-interest test.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, LEND LEASE GROUP LIMITED – ASX LLC, AUSTRALIA. DEPT OF EMPLOYMENT, MARITIME UNION OF AUSTRALIA, NATIONAL UNION OF WORKERS, UNITED VOICE, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, ONE NATION PARTY

Probe for Shorten over AWU’s GetUp! donation

roymorgansocial Leave a comment

Original article by Brad Norington
The Australian – Page: 1 & 2 : 16-Aug-17

Employment Minister Michaelia Cash has formally referred a union donation to activist group GetUp to the Registered Organisations Commission. The Australian Workers’ Union made the donation of about $A100,000 in 2005, when current Opposition Leader Bill Shorten was the union’s national secretary. A spokesman for Shorten has indicated that the donation had been approved by the AWU’s national executive. However, some members of the national executive at the time say they have no recollection of the donation being formally approved.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, GETUP LIMITED, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, HEALTH SERVICES UNION OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence dips again to 111.7 (down 2pts)

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 16-Aug-17

ANZ-Roy Morgan Australian Consumer Confidence fell 1.8% to 111.7 in the week ended 13 August 2017, and it is now below the long-term average of 112.9. Three out of the five sub-indices posted declines, with the sharpest fall in current economic conditions. Consumers’ sentiment towards current economic conditions remained sombre, with a fall of 6% coming straight after the prior week’s sharp decline of more than 10%. In contrast, the measure of future economic conditions was up a touch to 105.1, just above the long-term average for the first time since March. Attitudes toward current financial conditions fell 2%, largely reversing the previous week’s improvement. On the flipside, views towards future financial conditions were up 1.9% but are still below the long-run average.

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