Author: roymorgansocial

Chile’s SQM invests in Kidman lithium project

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 13-Jul-17

Kidman Resources has sold a 50 per cent stake in its Earl Grey lithium deposit to Chile-based SQM for $A110m. The deal comprises a cash payment of $A30m, with the balance to be provided in the form of development funding. Rather than merely exporting lithium ore, Kidman and SQM intend to build a processing plant in Australia to convert the ore to lithium hydroxide. John Deniz of Paragon Funds Management says integrated projects are likely to be more resilient if demand for lithium eases.

CORPORATES
KIDMAN RESOURCES LIMITED – ASX KDR, SOCIEDAD QUIMICA Y MINERA SA, PARAGON FUNDS MANAGEMENT, MARINDI METALS LIMITED – ASX MZN, SUPREME COURT OF WESTERN AUSTRALIA, NEOMETALS LIMITED – ASX NMT, MINERAL RESOURCES LIMITED – ASX MIN, TIANQI LITHIUM CORPORATION

Qld targets zero carbon emissions by 2050

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Original article by Mark Ludlow
The Australian Financial Review – Page: 8 : 12-Jul-17

The Queensland Government has set a target date of 2050 for the state to become carbon neutral. As part of this strategy, the Government wants the state’s carbon emissions to be 30 per cent lower than 2005 levels by 2030. It has previously set a target date of 2030 for renewable energy to comprise 50 per cent of the state’s electric power generation by 2030, compared with just seven per cent at present.

CORPORATES
QUEENSLAND. DEPT OF THE PREMIER AND CABINET, QUEENSLAND. DEPT OF ENVIRONMENT AND HERITAGE PROTECTION

Tatts takeover at risk of delay, says Tabcorp

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 : 12-Jul-17

Tabcorp has advised shareholders that a court challenge should not affect its timetable to complete an $A11bn merger with Tatts Group. The wagering giant still expects the deal to be completed during the December 2017 quarter, despite a move by the Australian Competition & Consumer Commission to seek a judicial review of the Competition Tribunal’s decision to approve the merger. Tabcorp has indicated that it will push for an expedited hearing of the ACCC’s application to the Federal Court.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. COMPETITION TRIBUNAL, FEDERAL COURT OF AUSTRALIA, DEUTSCHE BANK AG, ORD MINNETT GROUP LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, PACIFIC CONSORTIUM

Get on with energy fix

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Original article by Ben Potter
The Australian Financial Review – Page: 1 & 8 : 12-Jul-17

The Finkel energy review will be on the agenda for the Council of Australian Governments Energy Council meeting on 14 July. Australian Energy Market Operator CEO Audrey Zibelman has urged the nation’s energy ministers to endorse the Finkel review to enable appropriate action to be taken to ensure Australia’s energy security. Zibelman notes that the falling cost is prompting businesses, consumers and power companies to embrace renewable energy without the presence of a clean energy target.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS. ENERGY COUNCIL, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIAN ENERGY MARKET COMMISSION, AUSTRALIAN ENERGY REGULATOR, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA

Enterprise bargaining looks irrelevant

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 2 : 12-Jul-17

There is a growing shift away from enterprise bargaining in Australia, as the system has generally failed to meet expectations in the last two decades or so. The industrial awards system still dominates many workplaces, and even large companies such as Coles intend to base new enterprise agreements on the minimum award conditions. Meanwhile, unions often use enterprise agreements to secure additional concessions for their members rather than to increase workplace productivity and flexibility.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), MURDOCH UNIVERSITY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Record debt levels to keep RBA on hold

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Original article by Myriam Robin
The Australian Financial Review – Page: 25 : 12-Jul-17

PIMCO Australia Robert Mead notes that a rise in the nation’s household debt-to-income ratio to a record high has coincided with a downturn in household debt in other developed countries. He warns that it will be hard for the Reserve Bank to increase the cash rate in the near-term, given the growth in household debt and residential property prices. With little prospect of a local rate rise for some time, US interest rates could potentially soon return to parity with Australian rates for the first time in 15 years.

CORPORATES
PIMCO AUSTRALIA PTY LTD, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Netflix risks backlash by passing on GST

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Original article by Darren Davidson
The Australian – Page: 19 : 12-Jul-17

US-based streaming video giant Netflix will increase its subscription fees for new and existing Australian customers by between $A1 and $A3 per month. Netflix has attributed the price increase to the Federal Government’s decision to apply the goods and services tax to offshore providers of digital services. Rival subscription video-on-demand company Stan also recently increased its prices.

CORPORATES
NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS

Nine puts hard word on CA for new rights deal

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Original article by Nick Tabakoff
The Australian – Page: 2 : 12-Jul-17

Nine Entertainment Company is said to be keen to secure a broadcasting rights deal for all cricket formats before the end of 2017. The Nine Network’s head of sport, Tom Malone, does not expect Cricket Australia’s pay dispute to have an impact on negotiations over broadcasting rights, which Nine wants to finalise quickly. Cricket Australia had expectations that the next five-year deal could be worth up to $A900m, although broadcasting rights experts suggest that about $A700m is more likely. The current deal is worth about $A600m.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, CRICKET AUSTRALIA, TEN NETWORK HOLDINGS LIMITED – ASX TEN, BIG BASH LEAGUE, AUSTRALIAN CRICKETERS’ ASSOCIATION

PM’s pitch as business rebounds

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Original article by Adam Creed
The Australian Financial Review – Page: 1 & 2 : 12-Jul-17

National Australia Bank’s latest business survey shows that there was a month-on-month improvement in sales, profits and trading conditions in June 2017. Prime Minister Malcolm Turnbull, who addressed a business forum in London on 11 July, cited the data as proof that the Australian economy is growing and has not been unduly affected by a fall in mining investment. He attributed the continued resilience of the domestic economy to factors such as Australia’s stance on free trade. Shadow treasurer Chris Bowen argues that low wages growth is the main issue of concern for workers.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN LABOR PARTY, ARRIUM LIMITED – ASX ARI, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, HSBC AUSTRALIA HOLDINGS PTY LTD, ENERGYAUSTRALIA PTY LTD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, CITIGROUP PTY LTD, BUSINESS COUNCIL OF AUSTRALIA

Accenture paid $63m for The Monkeys

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Original article by Edmund Tadros
The Australian Financial Review – Page: 30 : 12-Jul-17

It has been revealed that a May 2017 deal for consulting firm Accenture to acquire Sydney-based creative agency The Monkeys was worth $A63m. The Monkeys posted a net profit of $A2.45m in 2015-16 and revenue of $A21.6m. The deal is part of a growing trend for consulting firms to diversify into the advertising and marketing sector. However, WPP Group’s Sir Martin Sorrell is among those to have questioned the merits of the deal given the different corporate cultures at Accenture and The Monkeys.

CORPORATES
ACCENTURE AUSTRALIA LIMITED, THE MONKEYS PTY LTD, WPP GROUP PLC, DELOITTE TOUCHE TOHMATSU LIMITED, PRICEWATERHOUSECOOPERS, ERNST AND YOUNG, KPMG, MAUD, TELSTRA CORPORATION LIMITED – ASX TLS, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, McKINSEY AND COMPANY, ENVISION