Author: roymorgansocial

More Australians are reading magazines – they just don’t need to own a copy

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-May-17

Roy Morgan has released the latest Australian Magazine Readership results for the 12 months to March 2017, showing an overall increase in magazine readership despite recent downward trends in circulation. Some 12.6 million Australians aged 14+ (63.4 per cent) read print magazines, the latest data for the 12 months to March 2017 shows – up 2.4 per cent compared with the year before. Australians are spending more on experiences and less on physical things, and this includes magazines. For magazines, the decline in circulation declines reflects the decrease in physical ownership of issues. Readership, however, has not followed the same downward trend. Instead, magazine readership overall – as well as engagement with a number of categories – has been comparatively stable, demonstrating that although Australians are showing less of a need to own magazines, they remain highly engaged with magazine content.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Good timing, as Morrison tips tax cuts in 2018

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Original article by Jacob Greber, Laura Tingle
The Australian Financial Review – Page: 9 : 11-May-17

The Australian Government aims to limit the nation’s tax-to-GDP ratio to 23.9 per cent. This cap is expected to be reached in 2022-23, although this could occur earlier due to factors such as income tax "bracket creep". Treasurer Scott Morrison has conceded that the Government may have to take action to avert this before 2022-23. He has flagged the possibility of personal income tax cuts in 2018, prior to the next federal election. The tax-to-GDP ratio is projected to be 21.5 per cent in 2016-17.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Bitter war on banks escalates

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Original article by Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 8 : 11-May-17

Federal Treasurer Scott Morrison says Australia’s five largest banks should avoid passing the cost of a proposed $A6.2bn Budget repair levy on to customers, warning that it would make them even less popular. Morrison has also advised that the levy will not be abolished once the Budget returns to surplus, although Australian Bankers’ Association CEO Anna Bligh has called for it to be scrapped once the deficit is eliminated. Meanwhile, shadow treasurer Chris Bowen says a royal commission into the bank is still needed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, LIBERAL PARTY OF AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence: Stabilising but still below average

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-May-17

ANZ-Roy Morgan Australian Consumer Confidence rose by 0.9% to 112.3 in the week ending 7 May 2017, and it is now just below its long-term average.

CORPORATES
Households’ views towards the economic outlook, both near and long term, posted solid increases of 5.0% and 4.9% respectively. The five-year economic outlook is now at its highest value since mid-February, though both are still well below their long-term average. Households’ views towards their finances were mixed. Confidence around current finances fell 3.3%, more than offsetting the 2.6% rise in the previous week. Meanwhile, views about future finances rose a modest 1.2%, partially reversing its previous 3.6% fall.

Fortescue refinances to fortify its books

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Original article by Paul Garvey
The Australian – Page: 42 : 10-May-17

Fortescue Metals Group has raised $US1bn ($1.36bn) via the issuance of five- and seven-year bonds. It was the pure-play iron ore miner’s first foray into the bond market for more than two years, and the proceeds will be used to repay some $A976m worth of debt that is due in 2019. Fortescue’s remaining debt will not have to be repaid until at least 2022. Its total debt has fallen below $US4bn, compared with a peak of $US10.7bn.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGONAUT SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Clubs industry split over penalty rates

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 9-May-17

United Voice has welcomed the decision by the RSL & Services Clubs Association of Queensland not to come under the hospitality award. The Fair Work Commission has suggested that the clubs award be scrapped and clubs be transferred to the hospitality award, so that clubs would not be at a disadvantage to hospitality employers. Such a disadvantage has been highlighted by Clubs Australia, which was unable to convince the FWC to cut penalty rates for clubs during its recent examination of rates within various sectors.

CORPORATES
UNITED VOICE, CLUBS AUSTRALIA AND NEW ZEALAND INCORPORATED, AUSTRALIA. FAIR WORK COMMISSION, RSL AND SERVICES CLUBS ASSOCIATION OF QUEENSLAND

Ratings agency warns Coalition

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Original article by Jacob Greber, Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 9-May-17

The Australian Government’s May 2017 Budget is tipped to forecast a surplus in 2020-21. However, ratings agency Moody’s Investors Service has doubts regarding the Government’s ability to meet this target, as well as the economic growth forecasts in the Budget. Marie Diron of Moody’s says the firm will consider all aspects of the Government’s Budget consolidation policy over the next five years. She adds that the Australian economy’s trend growth is unlikely to be any higher than 2.75 per cent.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION, RESERVE BANK OF AUSTRALIA

BHP should sell its US shale assets if price is right: analyst

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Original article by Peter Ker
The Australian Financial Review – Page: 11 : 9-May-17

Deutsche Bank’s Paul Young values BHP Billiton’s US shale assets at around $US6.3bn at present. However, he adds that based on the value of recent deals in the sector, BHP could potentially gain around $US9bn for its Eagle Ford and Permian shale assets. He suggests that BHP should hold off divesting the assets until it can get such a price for them. Young favours using the proceeds of such a sale to reduce debt and invest in conventional oil assets and mining projects. Tribeca Investment Partners also recently advocated the sale of BHP’s US shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, TRIBECA INVESTMENT PARTNERS PTY LTD, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION

China’s iron ore imports slump 13pc

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Original article by Angus Grigg
The Australian Financial Review – Page: 10 : 9-May-17

China’s iron ore imports fell by 13 per cent in April 2017, according to figures released on 8 May. Australia supplies around 65 per cent of China’s iron ore, and Xu Xiangchun of MySteel said the fall in April could in part be attributed to poor weather in Australia in March. China’s iron ore stockpiles rose to a record 135 million tonnes in the week ending 5 May, while steel production for the March quarter rose 4.6 per cent to 201.1 million tonnes.

CORPORATES
MYSTEEL.COM LIMITED, CHINA. GENERAL ADMINISTRATION OF CUSTOMS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Westpac eyes business lending to fill the gap

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Original article by James Eyers, James Frost
The Australian Financial Review – Page: 11 & 15 : 9-May-17

Westpac issued its 2016-17 interim financial results on 8 May 2017, recording a cash profit of $A4.02 billion, up three per cent on the previous corresponding period. Business credit and housing credit grew by 3.4 per cent and 6.5 per cent respectively, while cash earnings from its business bank increased by one per cent. Cash earnings from its BT Financial wealth unit declined by 11 per cent, while its interim dividend remained unchanged.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD