Author: roymorgansocial

Rio Tinto coal deal raises hopes of bigger payouts

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Original article by James Thomson
The Australian Financial Review – Page: 15 & 30 : 22-Jun-17

Rio Tinto shareholders will vote on Yancoal’s $US2.45bn ($A3.2bn) offer for its Hunter Valley thermal coal assets on 27 June. Rio Tinto CEO Jean-Sebastien Jacques says Yancoal was chosen as preferred bidder due to factors such as its decision to drop a deferred payment plan and the fact that it has already gained some regulatory approvals. Peter O’Connor of Shaw & Partners expects Rio Tinto to use some of the proceeds of the sale to increase its dividend payout, while he adds that another share buyback is also possible.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, COAL AND ALLIED INDUSTRIES LIMITED, SHAW AND PARTNERS LIMITED, ROYAL BANK OF CANADA, CITIGROUP PTY LTD, GREAT BRITAIN. SERIOUS FRAUD OFFICE, BLOOMBERG LP, BARCLAYS BANK PLC

Kathmandu rises above gloom over Amazon effect

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Original article by Simon Evans
The Australian Financial Review – Page: 25 : 21-Jun-17

Shares in Kathmandu Holdings have gained about 40 per cent in the last 12 months. The stock has been resilient amid recent bearish investor sentiment toward listed retailers in response to the looming entry of Amazon to the Australian market. Kathmandu has benefited from cold weather in the eastern states in the lead-up to its winter sale, while it reported year-on-year growth of 11.5 per cent in same-store sales in the three months to April 2017.

CORPORATES
KATHMANDU HOLDINGS LIMITED – ASX KMD, AMAZON.COM INCORPORATED, CYAN INVESTMENT MANAGEMENT PTY LTD, BRISCOE GROUP LIMITED, WILSON ASSET MANAGEMENT, BAIN AND COMPANY

RBA worries property could spark downturn

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Original article by Jacob Greber
The Australian Financial Review – Page: 2 : 21-Jun-17

The minutes of the Reserve Bank’s June 2017 monetary policy meeting show that board members are concerned about the potential impact of rising household debt and residential property prices on economic growth. Concerns were also raised that financial stability could be undermined by record low interest rates. Board members also stressed the need for continued co-operation between the central bank and other regulatory agencies, such as the Australian Prudential Regulation Authority.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COUNCIL OF FINANCIAL REGULATORS, UNITED STATES. FEDERAL RESERVE BOARD

ACCC bypass comes up trumps for Tabcorp

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Original article by John Stensholt
The Australian Financial Review – Page: 15 & 20 : 21-Jun-17

The Australian Competition Tribunal has cleared the proposed $A11bn merger of gambling giants Tabcorp Holdings and Tatts Group. Tribunal president Justice John Middleton rejected the Australian Competition & Consumer Commission’s concerns about the impact on competition, arguing that the merger will result in significant benefits for the public. However, he has stipulated that Tabcorp must proceed with the sale of Odyssey Gaming Services. Tabcorp hopes to finalise the merger by September.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, AUSTRALIA. COMPETITION TRIBUNAL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CROWNBET PTY LTD, RACING.COM, RACING VICTORIA LIMITED, NEWS CORPORATION – ASX NWS, SUN BETS

Union leaders praise McManus, urge workers to break laws

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 21-Jun-17

The militant Construction, Forestry, Mining & Energy Union organised stop-work rallies for building workers across Australia on 20 June 2017. The CFMEU’s Victorian secretary John Setka told a 20,000-strong audience in Melbourne that the union will actively target Australian Building & Construction Commission inspectors in their private lives. In Sydney, the Australian Manufacturing Workers’ Union’s New South Wales secretary Tim Ayres backed calls by ACTU secretary Sally McManus to ignore laws that are unjust.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN MANUFACTURING WORKERS’ UNION, ACTU, AUSTRALIA. DEPT OF EMPLOYMENT, MASTER BUILDERS AUSTRALIA INCORPORATED, MARITIME UNION OF AUSTRALIA, BORAL LIMITED – ASX BLD

ANZ-Roy Morgan Australian Consumer Confidence stability masks volatility in the sub-indices – down 0.5pts to 112.4

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Jun-17

ANZ-Roy Morgan Australian Consumer Confidence fell 0.4 per cent to 112.4 in the week ended 18 June 2017. Broadly, though, confidence has recovered from the mid-May low. That said, there continues to be significant volatility between sub-indices. Households’ expectations of current economic conditions edged up 0.6%, after a 5.2% decline the previous week. However, households’ confidence in future economic conditions rose 2.8%, more than offsetting the 2.6% fall in the previous week. Meanwhile, households’ views around current financial conditions dropped 8.1%, unwinding most of the 9.4% jump in the previous week. Views towards future conditions edged up 0.2%. This sub-index is at its highest point in seven weeks.

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

Rate hikes starting to take a toll on borrowers

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Original article by Michael Roddan
The Australian – Page: 19 & 23 : 21-Jun-17

The proportion of Australian home loan customers that are in arrears rose by five basis points to 1.21 per cent in April 2017. Erin Kitson of Standard & Poor’s says moves by lenders to raise mortgage interest rates independently of the Reserve Bank in recent months was a major contributor to this trend. The rate rises have been prompted by a regulatory crackdown on interest-only mortgage loans. Meanwhile, Australian Securities & Investments Commission chairman Greg Medcraft has stressed the need for responsible lending.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CANSTAR PTY LTD, ST GEORGE BANK LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, SOCIETE GENERALE SA

Fifield wants Senate media vote this week

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Original article by Rosie Lewis
The Australian – Page: 2 : 21-Jun-17

Communications Minister Mitch Fifield is keen for the Senate to vote on cross-media ownership reforms as soon as possible, although One Nation’s Brian Burston says a vote on the bill is unlikely this week. One Nation opposes abolition of the "two-of-three" rule, and Burston notes that his party’s alternative of a "three-out-of-four rule" has had a lukewarm response from the Government. Meanwhile, the Greens may be willing to support scrapping the two-of-three" rule, but only if action is taken to safeguard media diversity.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, ONE NATION PARTY, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY

National crosses floor to save penalty rates

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Original article by Joe Kelly
The Australian – Page: 4 : 21-Jun-17

The Australian Labor Party’s proposed change to the Fair Work Amendment bill has been defeated by one vote in the House of Representatives. Labor had sought to use legislation to overturn the Fair Work Commission’s decision to reduce weekend penalty rates for employees in the retail and hospitality sector. The Labor amendment was defeated 73-72 after Coalition backbencher George Christensen voted with the Opposition.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION, LIBERAL-NATIONAL PARTY OF QUEENSLAND

Stocks fall on banks’ failure to alter levy

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Original article by Richard Gluyas
The Australian – Page: 23 : 21-Jun-17

Shares in Australia’s four major banks and Macquarie Group were sold down on 21 June, in response to the passage of the Federal Government’s bank levy through Parliament and credit ratings downgrades by Moody’s. The Senate economics legislation committee made a number of recommendations concerning the levy, based on the suggestions of the five banks that will pay it, but they were rejected by the Government. Meanwhile, Deutsche Bank does not expect banks’ funding costs to be affected by the ratings downgrades.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. SENATE ECONOMICS LEGISLATION COMMITEE, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION