Author: roymorgansocial

Students face higher ed budget cuts

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 19-Apr-17

The Australian Government’s May 2017 Budget could include new measures that target university students and graduates. Stalled measures in the 2014 Budget are tipped to be abandoned, prompting speculation that the Government will seek to offset the failed $A7bn worth of spending cuts. These could potentially include an increase in students’ fees and a reduction in the income threshold for the repayment of HECS-HELP debts. At present, graduates must begin repaying their student debt when their annual income reaches $A54,869.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING

KKR in fresh $7.3bn Tatts bid

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Original article by Bridget Carter
The Australian – Page: 17 & 25 : 19-Apr-17

The Pacific Consortium, which is headed by private equity firm Kohlberg Kravis Roberts, has made a revised takeover bid for Tatts Group. The consortium’s latest offer of $A7.3bn values the wagering and lotteries group at $A4.21 per share, and would not require Australian Competition & Consumer Commission approval. Tabcorp is awaiting the Competition Tribunal’s decision on its rival cash and scrip bid. The Pacific Consortium first proposed acquiring Tatts in late 2016, with plans to demerge its wagering business.

CORPORATES
TATTS GROUP LIMITED – ASX TTS, PACIFIC CONSORTIUM, KOHLBERG KRAVIS ROBERTS AND COMPANY, KKR AND COMPANY LP, TABCORP HOLDINGS LIMITED – ASX TAH, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. COMPETITION TRIBUNAL, MACQUARIE GROUP LIMITED – ASX MQG, MORGAN STANLEY INFRASTRUCTURE, FIRST STATE SUPER, RACING NSW, MACQUARIE CAPITAL PTY LTD, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, UBS HOLDINGS PTY LTD

External factors align for a ‘buying opportunity’

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Original article by David Rogers
The Australian – Page: 25 : 19-Apr-17

Australia’s benchmark S&P/ASX 200 Index remained above the technically important 5,830- point level on 18 April 2017, despite a further downturn in the iron ore price. However, the local sharemarket has fallen by just 2.2 per cent since its recent peak of 5,950.1, and it could still test the 6,000-point level for the first time since 2008. Meanwhile, Morgan Stanley remains bearish about the outlook for the local market, and the firm still expects the S&P/ASX 200 to fall to 5,450 by the end of the year.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S 500 INDEX, CITIGROUP PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Business to pay as 457 visas axed

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Original article by Simon Benson, Sarah Martin
The Australian – Page: 1 & 4 : 19-Apr-17

People who are currently in Australia on 457 skilled visas will not be affected by the Federal Government’s move to replace them with two new types of temporary foreign worker visas that are subject to stricter criteria. The May 2017 Budget is expected to include a new foreign worker tax, which will be paid into a fund that will provide training for Australians in sectors that are experiencing a skills shortage. There has been a mixed response to the reforms within the business sector.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), ACTU, ONE NATION PARTY, ATLASSIAN CORPORATION PLC, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, AUSTRALIAN LABOR PARTY, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

IMF outlook perks up for jobs, inflation

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 19-Apr-17

The International Monetary Fund has forecast global economic growth of 3.5 per cent in 2017 and 3.6 per cent in 2018. The latest World Economic Outlook report also forecasts that Australia’s economic growth rate will rise to 3.4 per cent year-on-year by the December 2017 quarter, while the economy is forecast to grow by three per cent in 2018. Meanwhile, the IMF expects the nation’s unemployment rate to fall to 5.1 per cent in 2018. The IMF’s outlook for Australia is much more bullish than the most recent forecasts issued by the Treasury.

CORPORATES
INTERNATIONAL MONETARY FUND, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED

Ombudsman calls for tough work penalties

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Original article by Anna Patty
The Age – Page: 21 : 13-Apr-17

Fair Work Ombudsman Natalie James addressed a Senate inquiry on 12 April 2017. She conceded that the FWO has limited capacity to combat employers who deliberately ignore workplace laws because they feel that the potential financial penalties for underpaying staff are sufficiently low to make non-compliance worth the risk. James warned that employers will continue to exploit vulnerable workers unless the sanctions for non-compliance are sufficiently increased to provide a genuine deterrent. The inquiry is examining proposed changes to the Fair Work Act.

CORPORATES
AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. SENATE EDUCATION AND EMPLOYMENT LEGISLATION COMMITEE, 7-ELEVEN STORES PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CALTEX AUSTRALIA LIMITED – ASX CTX

Vincent show gets face lift

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Original article by Simon Plant
Herald Sun – Page: 3 : 13-Apr-17

The National Gallery of Victoria has confirmed that it has secured a Vincent van Gogh self-portrait for its upcoming "Van Gogh and the Seasons" exhibition. The self-portrait, which was painted in 1887, is being loaned to the NGV by the Musee d’Orsay in Paris. The exhibition, which is the latest in the NGV’s Melbourne Winter Masterpieces series, will feature almost 50 paintings by Van Gogh. The exhibition opens in late April 2017.

CORPORATES
NATIONAL GALLERY OF VICTORIA, MUSEE D’ORSAY, VAN GOGH MUSEUM, NATIONAL GALLERY (GREAT BRITAIN)

Why Teoh paid up to snare a spot in mobile

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Original article by Max Mason
The Australian Financial Review – Page: 50 : 13-Apr-17

TPG Telecom will raise $A400m from investors to partially finance its $A1.26bn deal to acquire an 11-year licence for mobile spectrum in the 700MHz band. TPG will establish Australia’s fourth mobile phone network, which is expected to cover about 80 per cent of the nation and is likely to spark a price war in the highly competitive market. TPG estimates that it will need to gain at least 500,000 mobile customers in order to achieve break-even status on an EBITDA basis. The company already boasts 1.9 million broadband customers, who can be offered bundled services.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, VODAFONE HUTCHISON AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, INVESTORS MUTUAL LIMITED, ARMYTAGE PRIVATE LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD

Turnbull to face clash on housing

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Original article by Simon Benson, David Uren, Rachel Baxendale, David Crowe
The Australian – Page: 1 & 4 : 13-Apr-17

A number of federal cabinet ministers and backbenchers support a proposal to allow first-home buyers to access their superannuation. They will lobby Prime Minister Malcolm Turnbull to consider adopting the initiative as part of the May 2017 Budget’s policy on housing affordability. However, Turnbull has reiterated his view that super should be solely used to provide an income stream in retirement. Chris Richardson of Deloitte Access Economics has expressed a similar opinion.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PRESS CLUB (AUSTRALIA)

$238bn tax shield cushions oil giants

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Original article by Ben Butler
The Australian – Page: 19 & 22 : 13-Apr-17

Data from the Australian Taxation Office shows that Petroleum Resource Rent Tax revenue from oil and gas companies fell to just $A845m in 2015-16, compared with $A1.79bn in 2013-14. Meanwhile, the industry claimed a total of $A238bn in tax deductions for exploration expenditure under carry-forward regulations in 2015-16, compared with just $A970 million in 2003-04. The PRRT is currently the subject of two separate reviews, although oil and gas producers have warned that changes to the tax may deter future investment in Australia.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, FEDERAL COURT OF AUSTRALIA