Author: roymorgansocial

Protectionism hurts growth: BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 3 : 28-Apr-17

BHP Billiton’s Huw McKay says global economic growth in 2017 is likely to be at the higher end of the group’s recent forecast of between three and 3.5 per cent. However, he warns that global growth is likely to slow over the rest of the current decade as some nations adopt protectionist policies. McKay adds that this will in turn affect global demand for resource commodities. BHP’s Vicky Binns says factors such as a looming increase in iron ore supply and lower demand for steel in China are likely to weigh on the iron ore price in coming months.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Budget debt will finance airport, rail

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Apr-17

Prime Minister Malcolm Turnbull has identified the proposed inland rail link between Melbourne and Brisbane as a "very high priority". He has also given indications that the rail link and Sydney’s second airport will be at least partially funded by the government via "good" debt. The May 2017 Budget will make a distinction between "good" and "bad" debt. Treasurer Scott Morrison notes that while the former generates income that can be used to repay debt, the latter is still needed to provide essential services.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, NBN CO LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, SYDNEY AIRPORT – ASX SYD

States lock away 200 years of gas supply: business

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Original article by Sarah Martin, Anthony Klan
The Australian – Page: 1 & 4 : 28-Apr-17

The Australian Petroleum Production & Exploration Association says the Federal Government’s move to impose LNG export controls could increase the nation’s sovereign risk and discourage investment in exploration and production. APPEA and Resources Minister Matt Canavan have criticised state governments for restrictions on gas exploration, and APPEA estimates that there are sufficient untapped gas reserves in Victoria and New South Wales to meet demand for gas on the east coast for about 200 years.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, SANTOS LIMITED – ASX STO, COUNCIL OF AUSTRALIAN GOVERNMENTS

Trump’s bold tax plan spurs PM to try again

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Original article by Joanna Mather, Sue Mitchell
The Australian Financial Review – Page: 3 : 28-Apr-17

The Australian Goverment will renew its push to pass a bill for across-the-board company tax cuts in the Senate after US President Donald Trump unveiled his tax reforms. Treasurer Scott Morrison notes that most developed nations have a lower company tax rate than Australia, and failing to act will threaten investment and jobs. Business Council of Australia CEO Jennifer Westacott and Wesfarmers MD Richard Goyder warn that Trump’s proposal to reduce the US corporate tax rate to 15 per cent highlights the need for Australia to have a more competitive tax regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, BUSINESS COUNCIL OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL

Battlers and retirees are more likely to have NBN than well-off homes and inner city Metrotechs

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Apr-17

A Roy Morgan Single Source survey has found that 67 per cent of Australian homes had fixed internet in the six months to February 2017. Some 14 per cent of homes were connected to the NBN, while 53 per cent had a non-NBN fixed home broadband connection. Analysis using Roy Morgan’s Helix Personas shows that homes in the "Leading Lifestyles" Community are the most likely to have a fixed internet connection, but the least likely to be on the NBN: 75 per cent have fixed broadband overall, but only nine per cent have the NBN, as it has not yet arrived in many established inner metropolitan suburbs. Likewise, only 12 per cent of "Metrotechs" living mostly in gentrified inner city hotspots are on the NBN, while 59 per cent have regular fixed broadband. Meanwhile, 18 per cent of "Battlers" have the NBN, while 39 per cent have regular fixed broadband.

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ROY MORGAN RESEARCH LIMITED

Bernardi alliance out to block Xenophon

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Original article by Rosie Lewis, Verity Edwards
The Australian – Page: 5 : 27-Apr-17

Liberal Democrat senator David Leyonhjelm says he has agreed to a "loose" voting alliance with the newly-enlarged Australian Conservatives. They will co-operate when voting on issues on which they broadly agree, with the aim of curbing the influence of the Nick Xenophon Team in the upper house. Australian Conservatives founder Cory Bernadi says the new party would welcome any Liberal politicians who wish to defect. His party recently merged with Family First Australia.

CORPORATES
AUSTRALIAN CONSERVATIVES, LIBERAL DEMOCRATIC PARTY, FAMILY FIRST PARTY AUSTRALIA LIMITED, LIBERAL PARTY OF AUSTRALIA, NICK XENOPHON TEAM, ONE NATION PARTY

Rise in inflation puts squeeze on households

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Original article by Jacob Greber
The Australian Financial Review – Page: 8 : 27-Apr-17

Financial markets believe there is little chance of an official interest rate cut in May 2017, following the release of CPI data for the March quarter. The headline inflation rate was 2.1 per cent year-on-year during the quarter, compared with 1.5 per cent previously. The inflation rate is now within the Reserve Bank’s target range of 2-3 per cent for the first time since late 2014. An increase in gas prices contributed to the rise in the inflation rate, which is now outpacing wages growth.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Japan Post takes axe to Toll jobs

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Original article by Damon Kitney
The Australian – Page: 17 & 26 : 27-Apr-17

Toll Holdings has shed about 300 jobs at its head office so far in 2017, and the transport and logistics group has revealed plans to axe an additional 1,700 positions over the next year. Toll’s Australian division, which employs about 25,000 people, is expected to bear the brunt of the job cuts. Toll will implement a restructuring program after parent company Japan Post flagged a $US3.6bn ($A4.8bn) writedown of the business and advised that 2017 EBIT is likely to be well below expectations. Japan Post paid $A6.5bn for Toll in 2015.

CORPORATES
TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, ASCIANO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, LINFOX PTY LTD, KIRIN HOLDINGS COMPANY LIMITED, LION-DAIRY AND DRINKS PTY LTD

Don’t get caught by cricket deal, Nine told

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Original article by Mitchell Bingemann
The Australian – Page: 20 : 27-Apr-17

Nine Entertainment Company’s broadcasting rights deal with Cricket Australia expires at the end of 2017. Sources have indicated that Nine will only strike a new deal that represents "fair value" for shareholders. Nine paid $A450m for its current five-year deal, and some analysts believe that it is losing between $A30m and $A40m a year as a result of the deal. Eric Choi of UBS says Nine should abandon the broadcasting rights or push for a deal that provides additional matches at no extra cost.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, CRICKET AUSTRALIA, UBS HOLDINGS PTY LTD

Atlas Iron needs to diversify, says new chief Lawrenson

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Original article by Tess Ingram
The Australian Financial Review – Page: 25 : 27-Apr-17

Atlas Iron MD Cliff Lawrenson says the proposed Corunna Downs mine remains the junior iron ore producer’s main priority. He adds that Atlas will seek to lift annual production to around 10-15 million tonnes over the long-term, but he notes that the company may need to diversify its operations to ensure that it avoids the financial problems that nearly caused its collapse in 2014. Rival iron ore producers BC Iron and Mount Gibson Iron are actively seeking to diversify.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI, MOUNT GIBSON IRON LIMITED – ASX MGX, KALIUM LAKES LIMITED – ASX KLL, PILBARA MINERALS LIMITED – ASX PLS