Author: roymorgansocial

BHP puts US shale back on block

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Original article by Paul Garvey
The Australian – Page: 17 & 26 : 27-Apr-17

BHP Billiton has reduced its 2017 forecast for copper production to between 1.33 million and 1.36 million tonnes due to the impact of industrial action at the Escondida mine in Chile. Metallurgical coal output is also expected to be lower due to Cyclone Debbie in Queensland, while iron ore production guidance has been reduced to between 268 million and 272 million tonnes following inclement weather in Western Australia during the March quarter. Meanwhile, BHP has flagged plans to sell its Fayetteville shale gas fields in the US.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AUSTRALIA PTY LTD

Media companies next in line to feel full force of Amazon’s arrival

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Original article by Max Mason
The Australian Financial Review – Page: 12 : 27-Apr-17

Andrew McLeod of Morgan Stanley says Australian media groups as well as retailers are likely to be affected by Amazon’s entry into the domestic market. He says retailers accounted for 20-30 per of overall advertising expenditure in 2016, and competition from Amazon may prompt local retailers to reduce their ad spend. McLeod adds that retailers are among the biggest source of ad revenue for TV networks, and the "Amazon effect" could prompt some retailers to shift more of their ad spend from traditional media to online.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, JB HI-FI LIMITED – ASX JBH, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, AMAZON PRIME VIDEO, AMAZON WEB SERVICES LLC, AUDIBLE TECHNOLOGIES LIMITED

US, Britain soak up cash

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Original article by David Uren
The Australian – Page: 28 : 27-Apr-17

Data shows that Australian foreign investment doubled in the 10 years to 2015, to $A534bn, and offshore investment now accounts for 32.4 per cent of GDP. The US tops the list of overseas investment destinations, at $A105bn, ahead of the UK ($A85bn). However, Andrew Parker of PwC notes that Asia accounts for only 10.9 per cent of Australia’s total foreign investment. A survey by PwC has found that Australia’s dividend imputation system is generally not regarded as a deterrent to investing in Asia.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX, ASSOCIATION OF SOUTH-EAST ASIAN NATIONS

ANZ-Roy Morgan Australian Consumer Confidence declines for the second week in a row – down 1.4pts to 111.2

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Apr-17

Headline ANZ-Roy Morgan Australian Consumer Confidence fell 1.24% to 111.2 in the week ended 23 April 2017, below its long run average. Households’ views towards their current finances fell 1.2%, while views about future finances fell 0.6%. Households’ expectations for economic conditions next year fell 5.3% taking the index to its lowest level since February 2016. Expectations for economic conditions over the next five years rose by 0.2%, but are still close to the lowest level for 2017.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

PM orders gas giants: Aussies first

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Original article by Sarah Martin
The Australian – Page: 1 & 4 : 27-Apr-17

The Federal Government will introduce an "Australian Domestic Gas Security Mechanism", which is aimed at ensuring that domestic gas supply is sufficient to meet forecast demand. Resources Minister Matt Canavan will be given the power to block gas exports to ensure that gas users on the east coast have access to sufficient gas. Prime Minister Malcolm Turnbull says the government aims to ensure that the domestic price of gas is affordable and reflects global export prices.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, COCONUT AIRLINES, ROYAL DUTCH SHELL PLC, GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, QUEENSLAND CURTIS LNG PTY LTD, AGL ENERGY LIMITED – ASX AGL

WA minister slams gas pipeline

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 26-Apr-17

Prime Minister Malcolm Turnbull recently signalled that the Federal Government is considering a proposal to build a gas pipeline linking Western Australia to the east coast. The transcontinental gas pipeline was mooted by former state premier Colin Barnett, but WA Mines Minister Bill Johnston says it would require other states to introduction policies requiring a certain proportion of gas to be reserved for domestic use. Johnston also says the State Government is open to discussions with the mining sector regarding the iron ore levy, although he has ruled out abolishing it.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, NATIONAL PARTY OF AUSTRALIA, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, HIGH COURT OF AUSTRALIA, VIMY RESOURCES LIMITED – ASX VMY, TORO ENERGY LIMITED – ASX TOE, CAMECO CORPORATION, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN LABOR PARTY

Budget in black by 2020: IMF

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Original article by David Uren
The Australian – Page: 1 & 5 : 26-Apr-17

The International Monetary Fund has forecast that the combined Budget deficit of Australia’s federal and state governments will fall to $A39.7bn in calendar 2017, compared with $A45.8bn in 2016. It also forecasts that a $A27bn increase in state and federal government revenue over the next four years will result in a combined Budget surplus of $A2.5bn in 2020. The IMF had previously forecast that a surplus would not be achieved until 2022. The IMF also expects the combined federal and state debt to top $A392.9bn in 2019, before falling to $A375.3bn in 2021.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY

PM expected to meet Trump in New York

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 26-Apr-17

Australian Prime Minister Malcolm Turnbull has held meetings with Iraq counterpart Haider Al-Abadi and Afghanistan president Ashraf Ghani during a trip to the Middle East. Turnbull also celebrated Anzac Day with Australian soldiers. His impromptu trip was a closely-held secret due to security concerns. Turnbull also held talks with US Defence Secretary James Mattis, and he expected to visit the US in early May to meet President Donald Trump and commemorate the 75th anniversary of the Battle of the Coral Sea.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. DEPT OF DEFENSE, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Inflation will decide the rate debate

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Original article by Philip Baker
The Australian Financial Review – Page: 30 : 26-Apr-17

Investors will be awaiting the release of Australia’s CPI data for the March 2017 quarter, which may influence the timing of any change to monetary policy. The headline inflation rate is widely tipped to have risen by 2.2 per cent year-on-year, which would be the first time that inflation has been within the Reserve Bank’s target range of 2-3 per cent since the September 2014 quarter. However, the underlying inflation rate for the year to March is expected to be around 1.8 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, WOOLWORTHS LIMITED – ASX WOW

Report pans banks’ reform resistance

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Original article by Richard Gluyas
The Australian – Page: 21 : 26-Apr-17

The ANZ Bank is the only major Australian bank to have supported the key recommendations of the House of Representatives economics committee’s first report on increasing competition and governance in the industry. The recommendations included measures to make bank executives more accountable for the misconduct of employees. The Australian Labor Party still maintains the need for a royal commission into the banking sector.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, LIBERAL PARTY OF AUSTRALIA