Author: roymorgansocial

Tax take smashed and getting worse

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 20-Dec-16

The Mid-Year Economic and Fiscal Outlook, released by Federal Treasurer Scott Morrison on 19 December 2016, shows that government revenue will be $A30 billion lower than forecast in the May 2016 budget. A positive effect of higher commodity prices will not be strong enough to compensate for lower tax revenue resulting from weak wages growth and lower than projected corporate tax collection in non-mining sectors.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Maintenance boom for resources

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 18 : 19-Dec-16

BIS Shrapnel forecasts that Australia’s resources sector will increase expenditure on maintenance work by 52 per cent over the next five years, to $A10bn. Adrian Hart of BIS says this will include both expenditure that has been deferred and spending on new assets. He adds that there could be some consolidation in the mining services sector as a result. The oil and gas sector is expected to account for the bulk of the increased expenditure on maintenance activity.

CORPORATES
BIS SHRAPNEL PTY LTD, PROGRAMMED MAINTENANCE SERVICES LIMITED – ASX PRG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WORLEYPARSONS LIMITED – ASX WOR, MONADELPHOUS GROUP LIMITED – ASX MND, UGL LIMITED – ASX UGL, CIMIC GROUP LIMITED – ASX CIM, RIO TINTO LIMITED – ASX RIO

ANZ-Roy Morgan New Zealand Consumer Confidence – Boxing On in December at 124.5

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Dec-16

The ANZ-Roy Morgan New Zealand Consumer Confidence Index has eased from 127.2 to 124.5 in December 2016, with the seasonally adjusted series showing a similar pull-back. The Current Conditions and Future Conditions Indexes fell 2 and 3 points respectively. The levels for both (Current Conditions 125.1; Future Conditions 124.1) remain very buoyant. Meanwhile, net optimism towards the economy in 1 and 5 years’ time fell to a net 22% (down 1) and 18% (down 10) respectively.

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

Shepherd’s banana republic warning

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 19-Dec-16

Business leader Tony Shepherd says "serious reform" is necessary to reduce Australia’s national debt, warning that it will be hard to achieve any progress until Australians fully appreciate the extent of the problem. Shepherd, who says the nation is in danger of becoming a banana republic, is heading a seven-person expert panel which plans to release a series of discussion papers on key issues, as well as recommendations for further action. Shepherd chaired the Federal Government’s National Commission of Audit in 2014.

CORPORATES
AUSTRALIA. NATIONAL COMMISSION OF AUDIT, THE MENZIES RESEARCH CENTRE LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, BUILDCORP COMMERCIAL PTY LTD, H2 VENTURES, GETUP LIMITED

End-year cyclone threat for miners, LNG producers

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Original article by Peter Ker
The Australian Financial Review – Page: 4 : 19-Dec-16

The Bureau of Meteorology has warned that there is the potential for a tropical cyclone to hit Western Australia’s north-west coast prior to Christmas. The bureau has advised iron ore and LNG producers to be alert for a possible cyclone, but stresses that it is too soon to predict whether this will occur. Cyclone Stan disrupted the Pilbara’s iron ore exports in January.

CORPORATES
AUSTRALIA. BUREAU OF METEOROLOGY, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROBE RIVER IRON ASSOCIATES, MITSUI AND COMPANY (AUSTRALIA) LIMITED, NIPPON STEEL AND SUMITOMO METAL CORPORATION

Lenders see sanity return to home loans

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Original article by Michael Bennet
The Australian – Page: 15 & 18 : 19-Dec-16

Bendigo & Adelaide Bank CEO Mike Hirst notes that Australia’s four major banks are offering smaller discounts on mortgage interest rates than in the first half of 2016. He adds that the banks would have struggled to achieve a good return on these loans given the size of some discounts. Credit Union Australia CEO Rob Goudswaard expects a rise in mortgage interest rates after a period of intense competition. He also does anticipate a rise in the cash rate in 2017.

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, CREDIT UNION AUSTRALIA LIMITED, BANK OF QUEENSLAND LIMITED – ASX BOQ, LIBERTY FINANCIAL PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, CREDIT SUISSE (AUSTRALIA) LIMITED, DIGITAL FINANCE ANALYTICS, DEUTSCHE BANK AG

IPO pipeline could start to run dry next year

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Original article by Sally Patten, Joyce Moullakis, Jessica Sier
The Australian Financial Review – Page: 13 & 17 : 19-Dec-16

Fund managers are bearish about the outlook for Australia’s IPO market in 2017. Data from Dealogic shows that a total of $US4.3bn was raised via IPOs in 2016, compared with $US5.6bn in 2015. Wilson Asset Management’s Chris Stott notes that many IPOs in the second half of 2016 have underperformed, which he says reflects a decline in the quality of companies that are listing. Kogan.com and Inghams are among the IPOs that have underperformed. In contrast, Afterpay has gained around 180 per cent since its sharemarket debut in May.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, WILSON ASSET MANAGEMENT, KOGAN.COM LIMITED – ASX KGN, INGHAMS GROUP LIMITED – ASX ING, PROPERTYLINK GROUP LIMITED – ASX PLG, REDBUBBLE LIMITED – ASX RBL, SILVER HERITAGE GROUP LIMITED – ASX SVH, AFTERPAY HOLDINGS LIMITED – ASX AFY, WELLARD LIMITED – ASX WLD, BAKER AND McKENZIE, TPG CAPITAL LP, CYAN INVESTMENT MANAGEMENT PTY LTD, FORAGER FUNDS MANAGEMENT PTY LTD

Mining sector costs on rise as cycle turns

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Original article by Paul Garvey
The Australian – Page: 15 & 16 : 19-Dec-16

There are indications of an upturn in mining industry activity in Australia in the wake of rising commodity prices. Independence Group CEO Peter Bradford notes that there is growing demand for mining equipment and the services of mining contractors, as well as growing competition for skilled labour. Fortescue Metals Group CEO Nev Power adds that it is becoming more difficult for the iron ore miner to achieve further cost savings, particularly with the rising oil price, which has in turn increased the cost of diesel fuel.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BARMINCO PTY LTD, DFP RECRUITMENT SERVICES PTY LTD, REGIS RESOURCES LIMITED – ASX RRL, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

New whistleblower protections could hit senior CFMEU officials

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 19-Dec-16

Former Construction, Forestry, Mining & Energy Union organisers Andrew Quirk and Brian Miller are continuing to challenge their sacking after revealing in 2014 that the union’s New South Wales branch had links to an underworld figure. They are being represented by lawyer Chris McArdle, who argues that they would have had much greater protection if the Federal Government’s new whistleblower laws had been in place at the time of their dismissal.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, SEYFARTH SHAW LLP

Western Australian Senator Rod Culleton resigns from One Nation

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Original article by Primrose Riordan
The Australian Financial Review – Page: Online : 19-Dec-16

Senator Rod Culleton has accused One Nation leader Pauline Hanson and her chief of staff James Ashby of "disunity and distrust" in a statement in which he announced his resignation from the party. He has also alleged that Hanson and Ashby tried to force him to resign, and claimed that One Nation policies were devised without any consultation with the party room.

CORPORATES
ONE NATION PARTY, HIGH COURT OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, WESFARMERS LIMITED – ASX WES