Author: roymorgansocial

The sharemarket is not working as capital provider: Credit Suisse

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Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 3-Aug-17

Annual net equity issuance via the Australian sharemarket has averaged $A40bn over the last 10 years. However, Hasan Tevfik of Credit Suisse estimates that just $A1bn has been raised so far in 2017, saying contributing factors include the limited number of IPOs and access to corporate debt at interest rates of around three per cent. Meanwhile, Credit Suisse has identified BHP Billiton, Qantas and Lend Lease as being among the companies that could potentially announce share buybacks during the August reporting season.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, LEND LEASE GROUP LIMITED – ASX LLC, COMPUTERSHARE LIMITED – ASX CPU, YANCOAL AUSTRALIA LIMITED – ASX YAL, ZIP INDUSTRIES AUSTRALIA, CRAVEABLE BRANDS LIMITED, ACCOLADE WINES LIMITED, SUPER A-MART PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, CHOW TAI FOOK ENTERPRISES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP INCORPORATED

The Australian Digital Inclusion Index 2017

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-Aug-17

Telstra CEO Andy Penn has launched the Australian Digital Inclusion Index 2017, which is powered by Roy Morgan Research. The Index shows that digital inclusion is growing in Australia, and Australians are spending more time – and are doing more – online. Since 2014, when data was first collected, Australia’s overall digital inclusion score has improved by 3.8 points, from 52.7 to 56.5. In 2016-17 alone, Australia’s score rose by 2.0 points, from 54.5 to 56.5. Scores for every state and territory also increased over this period. While their individual scores increased by varying amounts, the relative ranking of states and territories remains unchanged since the 2016 report. However, the gaps between digitally included and excluded Australians are substantial and widening. In general, Australians with low levels of income, education and employment are significantly less digitally included. Particular geographic communities are also experiencing digital exclusion.

CORPORATES
ROY MORGAN RESEARCH LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS

IR reform can help fix the low wage-growth problem

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Original article by Graeme Watson
The Australian Financial Review – Page: 39 : 2-Aug-17

The Australian Government is expected to use the next session of parliament to somewhat belatedly issue its response to the Productivity Commission’s 2015 report on the industrial relations regime. A major overhaul of the IR system is needed in order to address issues such as low wages growth and the nation’s high level of youth unemployment. Reforms that foster a less adversarial IR system and encourage greater employee engagement will help lift productivity, innovation and wages.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN BUREAU OF STATISTICS, ALDI STORES SUPERMARKETS PTY LTD

Typical family earns less than 2009 income

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Original article by Peter Martin
The Age – Page: 10 : 2-Aug-17

Analysis of data from the Household Income and Labour Dynamics in Australia (HILDA) survey shows that median real household disposable income was $A76,225 in 2015, compared with $A77,411 prior to the onset of the global financial crisis. The data also shows that the typical household income in Melbourne has increased by $A9,785 since the annual HILDA survey began in 2001, while typical household income in Sydney has risen by just $A5,182 over the last 15 years.

CORPORATES
UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIA. DEPT OF SOCIAL SERVICES

Tax leak as tradies borrow Bunnings ABN

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Original article by Nick Tabakoff, Amos Aikman
The Australian – Page: 1 & 8 : 2-Aug-17

Paul Drum of CPA Australia has called for major changes to the Australian Business Number system, arguing that it is being widely rorted. He says businesses are abusing the tax system by creating multiple ABNs or using incorrect ones. The chairman of the Federal Government’s black economy taskforce, Michael Andrew, adds that 3.5 million ABNs have been issued to companies or individuals that have not lodged a single tax statement or tax return. The push for reform comes amid revelations that many tradespeople are exploiting the tax system by issuing invoices that quote the ABN of hardware giant Bunnings.

CORPORATES
CPA AUSTRALIA, BUNNINGS GROUP LIMITED

Labor’s trust policy misses the rich

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 2-Aug-17

Tax experts have questioned the likely effectiveness of the Federal Opposition’s proposed tax crackdown on family discretionary trusts in targeting wealthy Australians. Chapman Eastway CEO Sean Cortis says taxing family trusts at the same rate as companies would primarily affect people with investable assets of less than $A5m, rather than the "mega rich". The reforms are aimed at curbing the practice of income-splitting, but tax experts say wealthy families are more likely to "warehouse" money in a company within a family trust.

CORPORATES
AUSTRALIAN LABOR PARTY, CHAPMAN EASTWAY, BDO AUSTRALIA LIMITED, GRIFFITH UNIVERSITY. GRIFFITH BUSINESS SCHOOL

ANZ-Roy Morgan Australian Consumer Confidence surges to a 22 week high

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-Aug-17

ANZ-Roy Morgan Australian Consumer Confidence rose 2.9% to 118.4 in the week ended 30 July 2017, and now sits at its highest point since late February. Despite the jump in the headline index, the details were more mixed, with views towards economic conditions rising sharply but confidence in financial conditions easing a touch. Households’ views around current and future financial conditions slipped 1.2% and 0.9% respectively. Both sub-indices remain above or close to their long-term averages. Consumers’ views towards current economic conditions shot up 12.3%, bringing the sub-index to its highest point since September 2013. Views around future economic conditions rose 8.2%, following a 2.7% increase in the previous week.

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

Iron awe: metal surges but investors cautious

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Original article by Matt Chambers
The Australian – Page: 22 : 2-Aug-17

The price of iron ore for delivery to ports in China has risen to its highest level since early April 2017. However, the share prices of Australia’s three largest iron ore producers have not benefited significantly from the rise in the price of the steel input. Market observers have differing views on the reasons for the rise in the iron price, while Vale CEO Fabio Schvartsman expects it to remain at around the current level in the near-term.

CORPORATES
VALE SA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DOW JONES NEWSWIRES, REUTERS HOLDINGS PLC, DALIAN COMMODITY EXCHANGE, PLATTS, THE STEEL INDEX LIMITED

Superannuation fund looks for a greenie to keep them in the black

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Original article by Eli Greenblat
The Australian – Page: 19 & 23 : 2-Aug-17

Vision Super hopes to attract new members for its sustainable balanced fund by targeting people who take part in climate change demonstrations and protest rallies. The superannuation fund, which boasts some 100,000 members in the local government sector and $A8.75bn worth of assets under management, is seeking to recruit a climate activist. John Roskam of the Institute of Public Affairs has questioned the appropriateness of Vision Super’s use of members’ funds to hire an environment activist.

CORPORATES
VISION SUPER PTY LTD, INSTITUTE OF PUBLIC AFFAIRS LIMITED, SUPERRATINGS PTY LTD, SEEK LIMITED – ASX SEK, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks growl at BEAR necessities

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 26 : 2-Aug-17

Australian banks have expressed concern about the Federal Government’s proposed Banking Executive Accountability Regime. Criticisms include the lack of sufficient industry consultation and the fact that while non-bank financial services providers such as insurers will be excluded from the regime, it will apply to such businesses that are owned by banks. The Australian Bankers’ Association has also questioned the length of consultation period, although it is generally supportive of the push to increase the accountability of bank executives.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, CUSTOMER OWNED BANKING ASSOCIATION