Author: roymorgansocial

Super funds slow to shake off ‘home bias’

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 35 : 28-Jun-17

A report by Vanguard shows that Australian superannuation funds continue to favour local shares over international equities. This is particularly so in the case of self-managed super funds. Australia’s dividend imputation tax system is a major contributor to this "home bias". However, Vanguard notes that the domestic sharemarket is much more heavily weighted toward banks and mining stocks, and investors can reduce portfolio volatility by increasing their exposure to international equities.

CORPORATES
VANGUARD INVESTMENTS AUSTRALIA LIMITED, PROVIDENCE FUNDS MANAGEMENT, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, AMP LIMITED – ASX AMP, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, IFM INVESTORS PTY LTD

Airbnb, Flight Centre book travel deal

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 31 : 27-Jun-17

Flight Centre and Airbnb have released details of a new partnership, under which business customers will be able to book Airbnb accommodation through the Flight Centre website. Airbnb executive David Holyoke notes that it is generating a growing proportion of its revenue from business travellers, while Flight Centre’s Andrew Flannery says corporate clients who are staying overseas for extended periods find the idea of living "like a local" appealing.

CORPORATES
FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, AIRBNB AUSTRALIA PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, AMERICAN EXPRESS COMPANY, CARLSON WAGONLIT TRAVEL, BCD TRAVEL, MARRIOTT CORPORATION

BHP puts pedal to metal for South Flank mine plan

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 31 : 27-Jun-17

BHP Billiton has signalled that it is likely to make a final investment decision on its South Flank iron ore project in Western Australia by mid-2018. BHP has allocated $US184m in initial funding for the project, which is forecast to cost between $US2.4bn and $US3.2bn to develop. South Flank is BHP’s preferred option to replace the Yandi iron ore mine, which produces 80 million tonnes a year but is approaching the end of its mine life.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NATIONAL PARTY OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Tech boom still has long way to run, says disruption fund

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Original article by James Frost
The Australian Financial Review – Page: 34 : 27-Jun-17

Evans & Partners’ executive chairman David Evans says digital disruption will affect sectors such as banking, insurance, health and retailing. Evans & Partners aims to capitalise on this with the launch of a global disruption fund, which will invest in US technology stocks such as Apple and Netflix, as well as Chinese technology stocks. The new fund will have an annual fee of 128 basis points and aims to initially raise $A100m from investors.

CORPORATES
EVANS AND PARTNERS PTY LTD, APPLE INCORPORATED, NETFLIX INCORPORATED, FACEBOOK INCORPORATED, ACTIVISION BLIZZARD INCORPORATED, ALIBABA GROUP HOLDING LIMITED, BAIDU.COM INCORPORATED, TENCENT HOLDINGS LIMITED, NETEASE.COM INCORPORATED, ALPHABET INCORPORATED, AMAZON.COM INCORPORATED, MICROSOFT CORPORATION, ZILLOW.COM, PAYPAL INCORPORATED, MASTERCARD INTERNATIONAL INCORPORATED, VISA INTERNATIONAL, MAGELLAN ASSET MANAGEMENT PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, GOOGLE INCORPORATED, REA GROUP LIMITED – ASX REA, CARSALES.COM LIMITED – ASX CAR, TELSTRA CORPORATION LIMITED – ASX TLS, SEEK LIMITED – ASX SEK, WESFARMERS LIMITED – ASX WES

Super bodies want wider ban on commissions

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 27-Jun-17

The Department of the Treasury is conducting a review of Australia’s Future of Financial Advice regime. The Australian Institute of Superannuation Trustees and Industry Super Australia have used a joint submission to call for the ban on up-front and trailing commissions for life insurance sold within superannuation to be extended to all life insurance sales. They contend that commission-based remuneration structures serve to put the interests of financial planners ahead of their clients.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Same-sex brawl fuels Lib turmoil

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Original article by David Crowe
The Australian – Page: 1 & 4 : 27-Jun-17

Leaked comments by Defence Industry Minister Christopher Pyne on the issue of same-sex marriage are causing major headaches for the Federal Government. Pyne’s comments appear to indicate that moderate Liberals could push for a conscience vote on the issue in the near future, despite Prime Minister Malcolm Turnbull having previously committed to a plebiscite on same-sex marriage. Conservative Liberals have accused Pyne of "sheer stupidity" over his comments, contending that the issue has taken the spotlight off the Government’s successful passage of its schools funding package

CORPORATES
AUSTRALIA. DEPT OF DEFENCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, SKY NEWS, NEWS CORPORATION – ASX NWS, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN CONSERVATIVES, NEWSPOLL

Rio Tinto backs Yancoal bid again

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 27-Jun-17

Rio Tinto has concluded that Yancoal’s bid for its Hunter Valley coal assets is superior to the rival offer from Glencore, despite the latter’s sweetened bid. Glencore has made a cash offer of $US2.675bn for the thermal coal assets, but Rio notes that it could take 12 months for Glencore to gain regulatory approval. In contrast, Yancoal is offering $US2.45bn in cash and royalty payments of $US240m, while it is expected to pass the last regulatory hurdles within months.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, COAL AND ALLIED INDUSTRIES LIMITED, ROYAL BANK OF CANADA, YANKUANG CORPORATION GROUP LIMITED, SENRIGAN CAPITAL GROUP LIMITED, NOBLE GROUP LIMITED, BLOOMBERG LP, CITIGROUP PTY LTD

Xenophon’s revolt over SA bank tax

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Original article by Simon Evans, James Frost
The Australian Financial Review – Page: 1 & 6 : 27-Jun-17

The Australian Bankers’ Association has indicated that all of its member banks oppose the South Australian Government’s bank levy. They intend to campaign against the tax by targeting marginal seats. Meanwhile, Senator Nick Xenophon says the levy could deter investment in SA at a time when action is needed to bolster the state’s economy. Xenophon and federal Treasurer Scott Morrison argue that there is no need to impose a state levy on banks, noting that the federal levy reflects the Australian Government’s implicit guarantee on bank deposits.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF THE TREASURY, SA BEST, GM HOLDEN LIMITED, ME BANK, LIBERAL PARTY OF SOUTH AUSTRALIA, AUSTRALIAN LABOR ADVISORY COUNCIL, AUSTRALIAN CONSERVATIVES, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE, PEOPLE’S CHOICE CREDIT UNION

Crown’s get-out-of-jail card

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Original article by Angus Grigg, Lisa Murray
The Australian Financial Review – Page: 1 & 8 : 27-Jun-17

Nineteen current and former employees of Crown Resorts pleaded guilty to gambling-related charges in a Shanghai court on 26 June 2017. They included three Australian citizens, among them senior executive Jason O’Connor. He was given a 10-month jail sentence, which includes time already spent in custody. The 19 were also served with fines totalling more than $A1.7 million, which Crown will pay on their behalf. Observers stated that the jail terms were shorter than expected, with the sentences including time served.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, PACIFIC FINANCIAL SERVICES, MELCO CROWN ENTERTAINMENT LIMITED, CHINA. MINISTRY OF PUBLIC SECURITY

Fed can’t afford to delay rate hikes: Williams

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Original article by Adam Creighton
The Australian – Page: 21 : 27-Jun-17

Federal Reserve Bank of San Francisco president John Williams says there should be a third rise in US interest rates in 2017, given that the nation now has low inflation and full employment. He warns that failure to increase interest rates could risk overheating the economy, which could in turn result in higher inflation. Williams adds that the Federal Reserve should also begin reducing its balance sheet, which has risen to $US4.5trn.

CORPORATES
FEDERAL RESERVE BANK OF SAN FRANCISCO, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, RESERVE BANK OF AUSTRALIA, UNIVERSITY OF TECHNOLOGY, SYDNEY