Author: roymorgansocial

IPO tale: more floats, less cash

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Original article by Scott Murdoch
The Australian – Page: 20 : 19-Jun-17

A total of 137 companies listed on the Australian sharemarket during the first five months of 2017, compared with 113 for the same period in 2016. However, the total value of initial capital raised has fallen from $A22.6bn to just $A13.67bn, and the total value of secondary capital raised has fallen from $A43.5bn to $A35.5bn. Simon Poidevin of Bell Potter anticipates an upturn in secondary capital raisings in the new financial year as companies seek growth via acquisitions.

CORPORATES
BELL POTTER SECURITIES LIMITED, BINGO INDUSTRIES LIMITED – ASX BIN, OFFICEWORKS SUPERSTORES PTY LTD, ZIP INDUSTRIES AUSTRALIA, CRAVEABLE BRANDS LIMITED, RED ROOSTER FOODS, OPORTO PTY LTD, KELLY PARTNERS GROUP HOLDINGS LIMITED – ASX KPG, NUTRANO PRODUCE GROUP, STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX

Resource states recover to drive jobs growth

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Original article by David Uren
The Australian – Page: 6 : 16-Jun-17

The Australian Bureau of Statistics has reported that 42,000 new jobs were added to the economy in May 2017. Full-time jobs accounted for 80 per cent of the 141,000 new jobs in the past three months. New South Wales added 49,000 new jobs over the past six months, while Victoria added 41,000. Resources states Queensland and Western Australia both recorded improved jobs growth in the past six months. Kristina Clifton of the Commonwealth Bank said the recent good job figures means an interest rate cut is unlikely in the foreseeable future.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA

MacKenzie the hot favourite as BHP votes for new chair

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Original article by John Durie
The Australian – Page: 18 & 32 : 16-Jun-17

There is widespread support among BHP Billiton shareholders for Ken MacKenzie to become its next chairman. Amcor’s return on capital rose strongly during his tenure as CEO, and he was not on the BHP board when it made ill-fated investments in the US shale sector. However, the selection of a new chairman ultimately rests with the BHP board, which could potentially opt against MacKenzie in order to avoid suggestions that it was swayed by investors.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, ELLIOTT MANAGEMENT CORPORATION, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC, RIO TINTO LIMITED – ASX RIO, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, VODAFONE AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, FEDERAL COURT OF AUSTRALIA, AMAZON.COM INCORPORATED, AUSTRALIA POST, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY

Levy a shock for foreign investors: NAB

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Original article by James Eyers
The Australian Financial Review – Page: 18 : 16-Jun-17

The Senate Economics Legislation Committee is currently investigating the bill to implement the Federal Government’s proposed bank levy. National Australia Bank CFO Gary Lennon says foreign investors have expressed concern to him about the tax, including the rushed manner in which it has been adopted. Amongst other things, submissions to the committee have argued that the bill should include a "sunset clause" and that the tax should cover foreign banks.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. SENATE ECONOMICS LEGISLATION COMMITEE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE BANK LIMITED – ASX MBL, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BANKERS’ ASSOCIATION, ME BANK, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, CUSTOMER OWNED BANKING ASSOCIATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS

20pc power price shock hits home; Energy Australia urges Finkel blueprint

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Original article by Ben Potter
The Australian Financial Review – Page: 1 : 16-Jun-17

Energy Australia has announced large price increases for its gas and electricity customers in New South Wales and South Australia. The increases – of up to 20 per cent – take effect as from 1 July 2017, and come as the Turnbull government deliberates on whether to adopt the Finkel’s energy review recommendations. Kim Clarke, Energy Australia’s chief customer officer, says the Finkel review represents a good "blueprint" for Australia’s future energy needs.

CORPORATES
ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AGL ENERGY LIMITED – ASX AGL, ACTEWAGL, CARBON CONSERVATION PTY LTD, ST VINCENT DE PAUL SOCIETY

Melbourne cladding still in place after fire

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Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 16-Jun-17

The tragic Grenfell Tower fire in London and the possible links to its external cladding has led to concerns about buildings with similarly dangerous cladding in Australia. Cladding on one such building, the Lacrosse building in Melbourne, was directed to be removed after it was affected by a potentially lethal fire in November 2014, but the cladding remains. Victorian Planning Minister Richard Wynne says many apartment buildings in Australia could have the same cladding problems as the Lacrosse building.

CORPORATES
VICTORIA. DEPT OF JUSTICE AND REGULATION, LU SIMON BUILDERS PTY LTD, VICTORIA. BUILDING APPEALS BOARD, VICTORIA. BUILDING COMMISSION, MELBOURNE METROPOLITAN FIRE BRIGADE, CSIRO, GREAT BRITAIN. NATIONAL HEALTH SERVICE, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, QUEENSLAND. DEPT OF HOUSING AND PUBLIC WORKS, ELENBERG FRASER PTY LTD, CHARTER HALL GROUP – ASX CHC, CITY OF PORT PHILLIP, CITY OF MELBOURNE, METROPOLITAN FIRE AND EMERGENCY SERVICES BOARD

Telstra denies ‘ambush’ over massive job cuts

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Original article by Supratim Adhikari
The Australian – Page: 21 : 16-Jun-17

Telstra is to make 1,400 workers redundant, with the majority of the job losses understood to be occurring in New South Wales and Victoria. Telstra has refuted union claims that there was insufficient consultation about its actions, while Melissa Donnelly from the Community & Public Sector Union says that country areas could be especially impacted by the redundancies. She says it is hard to imagine that the job losses will not result in a drop in the quality of Telstra’s customer service.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, COMMUNITY AND PUBLIC SECTOR UNION, NBN CO LIMITED

PM queried Robb’s China role

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Original article by Primrose Riordan
The Australian – Page: 5 : 16-Jun-17

Former Trade Minister Andrew Robb is said to have taken on a consulting role with Chinese firm Landbridge on 1 July 2016, the day before the federal election. With a recent television program having raised concerns over Chinese influence in Australia, Deputy Prime Minister Barnaby Joyce claimed that "questions" need to be asked about the timing of Robb’s appointment. Prime Minister Malcolm Turnbull says Robb had assured Martin Parkinson, the head of Turnbull’s department, that he had not breached any ministerial standards in taking on the role with Landbridge.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, LANDBRIDGE GROUP COMPANY LIMITED, AUSTRALIAN LABOR PARTY, AUSTRADE, AUSTRALIA CHINA BUSINESS COUNCIL, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BROADCASTING CORPORATION, FAIRFAX MEDIA LIMITED – ASX FXJ

Senate pushes union pay deal inquiry

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Original article by Ewin Hannan
The Australian – Page: 5 : 16-Jun-17

The Senate will proceed with an inquiry into enterprise bargaining agreements struck by the Shop, Distributive & Allied Employees Association and large retailers. The inquiry follows allegations that employers such as Coles and KFC had offered EBAs with lower penalty rates than the industry award. The inquiry’s scope to look into "any other related matters" will be restricted to penalty rates in the retail, hospitality and fast-food sectors. This is likely to exclude Cleanevent from the inquiry. Its controversial EBA was negotiated during the tenure of Opposition Leader Bill Shorten at the Australian Workers’ Union.

CORPORATES
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, COLES SUPERMARKETS AUSTRALIA PTY LTD, KFC, WOOLWORTHS LIMITED – ASX WOW, McDONALD’S AUSTRALIA LIMITED, CLEANEVENT PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIAN GREENS, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, NICK XENOPHON TEAM, ACTU

Commercial yields to tighten further: AMP

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 34 : 16-Jun-17

Opinion is divided as to whether Australia’s commercial real estate sector is heading for a major downturn. Shane Quinn of Quintessential Equity says he can foresee "carnage" if banks decide to cut back on lending, but Adam Geha, the CEO of fund manager EG, says he cannot foresee a correction in the immediate future. Geha’s comments are echoed by AMP Capital chief economist Shane Oliver, who says a commercial property market crash looks to be unlikely.

CORPORATES
QUINTESSENTIAL EQUITY PTY LTD, EG CAPITAL PTY LTD, AMP CAPITAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA