Author: roymorgansocial

Crossbenchers threaten blockade on media bill

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Original article by Rosie Lewis, Joe Kelly
The Australian – Page: 4 : 15-Jun-17

The Australian Government requires the support of at least 10 Senate crossbenchers for its cross-media ownership reform bill, which will be introduced to Parliament in coming days. Gaining the support of the Nick Xenophon Team will be crucial, given that One Nation has reiterated its opposition to abolition of the "two-out-of-three" rule. The Australian Labor Party also opposes scrapping this rule, while the Greens’ Scott Ludlam has warned that the proposed reforms will reduce media diversity.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NICK XENOPHON TEAM, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, TEN NETWORK HOLDINGS LIMITED – ASX TEN

Cranston’s long ATO career ends in court

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Original article by Joanna Mather, Misa Han
The Australian Financial Review – Page: 7 : 14-Jun-17

Australian Tax Office veteran Michael Cranston has formally resigned in the wake of revelations about a massive tax fraud that involves his son and daughter. Cranston himself was not involved in the $A130m tax fraud, but he has been charged with two counts of abuse of public office. The deputy commissioner of taxation has been suspended without pay since the tax scam was exposed, while another three ATO officials have also been suspended while the investigation into the scandal continues.

CORPORATES
AUSTRALIAN TAXATION OFFICE

China hearing date for Crown staff

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Original article by Angus Grigg, Lisa Murray
The Australian Financial Review – Page: 7 : 14-Jun-17

Australian-listed Crown Resorts has confirmed that 19 of its current and former employees have been formally charged in China following their arrest in October 2017. They face charges of promoting gambling in China, and are scheduled to appear in court on 26 June 2017. Shanghai criminal lawyer Si Weijiang says the most senior employees could be given longer sentences, while some of the more junior employees could potentially be given suspended sentences. Fourteen current Crown employees and two former employees are still being held in custody, while three have been released on bail.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN

Coalition in revolt over climate fix

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 14-Jun-17

Coalition MPs met on 13 June 2017 to discuss the Finkel energy review’s proposal to introduce a clean energy target, with sources indicating that most government ministers a and MPs stated their opposition to the CET model outlined by Chief Scientist Alan Finkel. There was widespread support in the partyroom for clean coal to be regarded as a low-emissions energy source, although this is likely to be opposed by the Australian Labor Party. Meanwhile, Labor has indicated that it will not support any move to allow the Clean Energy Finance Corporation to invest in carbon capture and storage technology.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST

Federal debt surges past half-a-trillion

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Original article by Eryk Bagshaw
The Sydney Morning Herald – Page: 4 : 14-Jun-17

The Australian Government’s gross debt has increased by $A9bn since early May 2017, to a record $A499bn. It is poised to rise above $A500bn in coming days, and it is projected to top $A663bn in 2020. The Government’s debt ceiling was increased to $A500bn by former treasurer Joe Hockey in 2013, but it was subsequently abolished later in the same year. One Nation senator Pauline Hanson and Liberal Party senator Dean Smith have urged the reintroduction of a formal debt ceiling.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, ONE NATION PARTY, LIBERAL PARTY OF AUSTRALIA

Payment call puts Paladin in fight to survive

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Original article by Tess Ingram
The Australian Financial Review – Page: 30 : 14-Jun-17

Paladin Energy’s proposed debt restructuring is in doubt after an independent expert ruled that the embattled uranium miner must repay Electricite de France around $US277m within 30 days. The France-based energy utility is a major buyer of uranium from Paladin, and its support is crucial to the Australian-listed group’s deal to restructure its debt. Matthew Keane of Argonaut Securities says Paladin could face insolvency unless it can secure a standstill agreement. Paladin’s debt totalled $US665m at the end of the March 2017 quarter.

CORPORATES
PALADIN ENERGY LIMITED – ASX PDN, ELECTRICITE DE FRANCE, ARGONAUT SECURITIES PTY LTD

Mortgage rate hikes pressure income

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Original article by Michael Roddan
The Australian – Page: 24 : 14-Jun-17

Data from RateCity shows that Australian mortgage interest rates for investors and borrowers with interest-only loans have generally risen by about 56 basis points in the last two months. Lenders have increased home loan interest rates seven times in the last two years, with rates for interest-only loans rising more quickly than those for owner-occupiers as lenders seek to shift customers from interest-only loans to principal-and-interest products. Martin Crabb of Shaw & Partners notes that a rise in home loan repayments is having an adverse impact on the level of household savings.

CORPORATES
RATECITY PTY LTD, SHAW AND PARTNERS LIMITED, RESERVE BANK OF AUSTRALIA

Tech sell-off isn’t end of the world

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Original article by Philip Baker
The Australian Financial Review – Page: 32 : 14-Jun-17

The Nasdaq Composite Index has gained nearly 15 per cent so far in 2017, despite shedding 2.5 per cent in the last two trading sessions. While shares in the so-called FAANG stocks (Facebook, Apple, Amazon, Netflix and Google parent Alphabet) have been heavily sold down in recent days, they have all posted strong gains so far in the calendar year. Meanwhile, although US technology stocks are widely considered to be overvalued, the price-to-earnings ratio of the Nasdaq 100 is trading at around 20.3, compared with a peak of around 45 prior to the "tech wreck" in 2000.

CORPORATES
NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, APPLE INCORPORATED, AMAZON.COM INCORPORATED, NETFLIX INCORPORATED, GOOGLE INCORPORATED, ALPHABET INCORPORATED

MacKenzie backed to head BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 30 : 14-Jun-17

Brenton Saunders of BT Investment management says former Amcor CEO Ken MacKenzie is the wealth manager’s preferred candidate to succeed Jac Nasser as BHP Billiton’s chairman. Saunders argues that unlike the other two leading candidates, MacKenzie was not on the BHP board when the resources giant made its ill-fated investment in US shale assets in 2011. Saunders has also praised MacKenzie’s expertise in terms of capital allocation and management. Lindsay Maxsted and Malcolm Broomhead are widely regarded as the other likely contenders to replaced Nasser.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AMCOR LIMITED – ASX AMC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ORICA LIMITED – ASX ORI, WESTPAC BANKING CORPORATION – ASX WBC, ABERDEEN ASSET MANAGEMENT LIMITED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

Ten board mulls putting network into administrator’s hands

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 18 : 14-Jun-17

Ten Network’s shares went into a trading halt on 13 June 2017, pending a board meeting to discuss the free-to-air broadcaster’s future after three key shareholders elected not to guarantee a new loan facility. KordaMentha is expected to be appointed as administrator following the decision by Lachlan Murdoch, Bruce Gordon and James Packer, who had guaranteed the current $A200m loan facility that expires in late 2017. Murdoch and Gordon have been touted as potential bidders for Ten if cross-media ownership laws are relaxed.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOELIS AND COMPANY, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, WIN CORPORATION PTY LTD