Author: roymorgansocial

Nearly three million Australians are ‘trusted advisors’ for finance and investment decisions

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 14-Jun-17

A Roy Morgan Single Source survey has found that 14% of Australians aged 14+ (2.96 million people) were asked by their friends or families for advice regarding their finances and investments in the year to March 2017. This large number of ‘trusted advisors’ has significant potential to influence the financial and banking decisions of the people who ask for their advice. The survey also shows that of the sixteen largest consumer banks, Citibank has the highest proportion of customers (25.2%) that are asked by friends or family for their financial advice. Macquarie Bank has the second highest proportion of customers who are asked for their advice (24.2%), followed by Heritage Bank (23.3%) and ING Direct (21.8%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, MACQUARIE BANK LIMITED – ASX MBL, HERITAGE BANK LIMITED – ASX HBS, ING DIRECT, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF SOUTH AUSTRALIA LIMITED, BENDIGO BANK, BANK OF WESTERN AUSTRALIA LIMITED

Technology plunge raises fears of meltdown

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Original article by John Kehoe
The Australian Financial Review – Page: 27 : 13-Jun-17

The Nasdaq Composite Index reached a record high on 9 June 2017, before closing down 1.8 per cent amid bearish sentiment toward technology stocks. Shares in Facebook, Amazon, Apple, Netflix and Google parent Alphabet shed 3-5 per cent. The sell-off was prompted by a range of factors, including a report from Goldman Sachs suggesting that many US technology stocks are overvalued. Analysts have downplayed comparisons with the "tech wreck", while Bruce McCain of Key Private Bank says a pullback in the sector was inevitable.

CORPORATES
NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, APPLE INCORPORATED, NETFLIX INCORPORATED, GOOGLE INCORPORATED, ALPHABET INCORPORATED, MICROSOFT CORPORATION, THE GOLDMAN SACHS GROUP INCORPORATED, KEY PRIVATE BANK, CITRON RESEARCH, NVIDIA CORPORATION, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX

Finkel fires Coalition coal battle

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 13-Jun-17

The Australian Government appears to be struggling to secure backing for the Clean Energy Target (CET) proposed by Professor Alan Finkel. His recommendation involves requiring a certain percentage of electricity to be generated by low emission sources. The more conservative sections of the Liberal Party want "clean coal" to be regarded as a low emission source. However, the Australian Labor Party may not support a CET under these circumstances.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, MINERALS COUNCIL OF AUSTRALIA, ENERGY NETWORKS ASSOCIATION OF AUSTRALIA

Blueprint ‘too little too late’ to save Melbourne methanol plant

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Original article by Ben Potter
The Australian Financial Review – Page: 7 : 13-Jun-17

Coogee Chemicals announced in March 2017 that it would dismantle its methanol plant in Melbourne and re-locate it to the US, due to the high cost of gas on Australia’s east coast. Although the Finkel review acknowledged that bans on gas exploration by Australian states were having an impact on gas prices and supply -and the cost of electricity – and that "blanket" bans should be avoided, Coogee Chemicals has made it clear that it does not intend to reverse its decision.

CORPORATES
COOGEE CHEMICALS PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL, MANILDRA MILLING PTY LTD, REMAPAK PTY LTD

Paradice mulls responsible investor fund

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Original article by John Stensholt
The Australian Financial Review – Page: 26 : 13-Jun-17

Paradice Investment Management’s David Paradice says his company is considering setting up a number of new funds over the next year. He says they could include an emerging markets fund and an environmental, social and governance fund. Paradice, who is currently based in the US, was the recipient of an Order of Australia award as part of the 2017 Queen’s Birthday honours. He says he would like to see companies focus more on making communities better, as well as treating their staff better and reducing waste.

CORPORATES
PARADICE INVESTMENT MANAGEMENT PTY LTD, UNIVERSITY OF COLORADO, ALPHABET INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, AMAZON.COM INCORPORATED, CLIMATE COUNCIL OF AUSTRALIA LIMITED, SOCIAL VENTURES AUSTRALIA LIMITED, TARONGA CONSERVATION SOCIETY AUSTRALIA

7-Eleven worker payouts top $110m

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Original article by Anna Patty
The Age – Page: 1 : 13-Jun-17

Convenience store chain 7-Eleven has now paid more than $A110 million to workers who were found to have been underpaid by its franchisees. Professor Allan Fels says it is of concern that fines for wage underpayment under current laws are far lower than what 7-Eleven has voluntarily paid to affected staff. Employment Minister Michaelia Cash contends that proposed changes to the Fair Work Act will help prevent future exploitation of workers, but Labor’s Brendan O’Connor says the changes are insufficient.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK OMBUDSMAN

Keeping Ten afloat relies on new deals

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Original article by Max Mason
The Australian Financial Review – Page: 11 & 16 : 13-Jun-17

Moelis & Company is said to be confident of securing a new $A250m financing deal for Ten Network after Bruce Gordon, James Packer and Lachlan Murdoch chose not to back it. They had guaranteed the network’s existing $A200m loan facility, which expires in late 2017. Murdoch and Gordon are seen as potential buyers of Ten if it goes into receivership, although they would require changes to cross-media ownership laws. Meanwhile, Ten is seeking to reduce costs by renegotiating US content deals with CBS and 21st Century Fox, which are worth about $A150m a year.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, MOELIS AND COMPANY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NETFLIX INCORPORATED, UBS HOLDINGS PTY LTD, WIN CORPORATION PTY LTD, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Rio’s Silvergrass development on track for first iron ore this year

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Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 13-Jun-17

Production at Rio Tinto’s Silvergrass iron ore mine in Western Australia is slated to resume in July 2017, after being put on hold earlier in the year. Meanwhile, the final stage of the Silvergrass project is expected to be completed in the December quarter, which will double the mine’s annual output to 20 million tonnes. The final stage of the project includes construction of a crusher and a nine-kilometre conveyor.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ROY HILL HOLDINGS PTY LTD

All eyes on Fed’s expected interest rate rise

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Original article by John Kehoe
The Australian Financial Review – Page: 27 : 13-Jun-17

Financial market pricing indicates that the US Federal Reserve is almost certain to increase official interest rates in June 2017. Data showing that the US unemployment rate fell to a 16-year low in May will strengthen the case for a rate rise. Meanwhile, market watchers will be seeking guidance from the central bank on its plans to reduce its balance sheet, which has risen to $US4.5trn as a result of quantitative easing measures.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, THE GOLDMAN SACHS GROUP INCORPORATED, CITIBANK LIMITED, NASDAQ COMPOSITE INDEX, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, APPLE INCORPORATED, ALPHABET INCORPORATED, GOOGLE INCORPORATED, NETFLIX INCORPORATED, CME GROUP INCORPORATED, RBC CAPITAL MARKETS

Over 2.6 million Australians were unemployed or under-employed in May

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Jun-17

Australia’s real unemployment rate was 9.8% (1.284 million Australians looking for work) in May 2017. In addition 1.338 million Australians were under-employed (10.2% of the workforce). This is a total of 2.622 million Australians (20% of the workforce) looking for work or looking for more work. In May the total Australian workforce was 13,074,000 (up 291,000 in 12 months) and employment grew to 11,790,000 (up 376,000). However, the increase in employment was almost entirely driven by a large increase in part-time employment, which rose 346,000 to 4,238,000. Full-time employment rose a modest 30,000 to 7,552,000. Roy Morgan Research executive chairman Gary Morgan says last week’s Fair Work Commission decisions to increase the minimum wage by $22 per week (+3.3%) and partly defer cuts to Sunday penalty rates over three years instead of now have dealt a significant blow to the prospect of more jobs for Australia’s unemployed and under-employed.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN BUREAU OF STATISTICS