Author: roymorgansocial

Budget’s $100bn reality check

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Original article by David Crowe, David Uren
The Australian – Page: 1 & 6 : 19-Dec-16

The Australian Government’s Mid-Year Economic and Fiscal Outlook is expected to show that the combined Budget deficit for the next four years will be close to $A100bn. Finance Minister Mathias ­Cormann has warned that the rally in the price of iron ore and coal will not be sufficient to offset falling revenue from corporate and income tax. The MYEFO is tipped to scale back the May 2016 Budget forecasts for growth in wages and employment.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. NATIONAL COMMISSION OF AUDIT, DELOITTE ACCESS ECONOMICS PTY LTD, S&P GLOBAL RATINGS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Union’s law-breaking ‘knows no bounds’

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Original article by Ewin Hannan
The Australian – Page: 6 : 16-Dec-16

The Construction, Forestry, Mining & Energy Union has been fined for failing to comply with the Fair Work Act in its dealings with Hindmarsh Construction Australia. The company was the head contractor on a $105m apartment project in Brisbane, and the court upheld claims that the CFMEU had used a threat of industrial action to force Hindmarsh to accede to its demands. The CFMEU and its former national president Dave Hanna have been fined $A37,500.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, HINDMARSH CONSTRUCTION AUSTRALIA, FEDERAL CIRCUIT COURT OF AUSTRALIA, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

Schwartz to replace Ridout on RBA board

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Original article by David Crowe
The Australian – Page: 19 : 16-Dec-16

Businesswoman and philanthropist Carol Schwartz will take up a five-year appointment on the Reserve Bank of Australia’s board in February 2017. Schwartz owns a property development company and is a director of the listed Stockland. Heather Ridout will step down from the RBA board after five years. The Federal Government has also appointed new members to agencies such as the Productivity Commission and the Administrative Appeals Tribunal.

CORPORATES
RESERVE BANK OF AUSTRALIA, STOCKLAND – ASX SGP, QUALITAS PROPERTY PARTNERS PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, AUDITING AND ASSURANCE STANDARDS BOARD, PAYMENTS SYSTEM BOARD, SUSSAN CORPORATION (AUST) PTY LTD, BANK OF MELBOURNE LIMITED, WOMEN’S LEADERSHIP INSTITUTE AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIANSUPER PTY LTD, ASX LIMITED – ASX ASX, AUSTRALIAN LABOR PARTY, HIGGINS 200 CLUB

Satisfaction with financial performance of superannuation steady in November but down over the year

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

A Roy Morgan Single Source survey has found that 58.4% of Australians aged 14+ who have superannuation were satisfied with their fund’s financial performance in the six months to November 2016. This was unchanged from October but down by 0.9% points over the year. The survey also shows that industry funds have retained the lead in satisfaction (59.2%) over retail funds (56.7%), but both have declined over the last 12 months, with industry funds down 1.2% points and retail funds down 1.4% points. Both score poorly in terms of the critically important "very satisfied" rating, at 17.7% for industry funds and 16% for retail funds. Self-managed funds have the highest satisfaction with 74.3% (down 1.7% points over the last year), followed by public-sector funds with 69.8% (up 1.8% points). Meanwhile, CARE Super had the highest satisfaction rating among the 18 largest super funds, at 75% (up 10.2% points year-on-year).

CORPORATES
ROY MORGAN RESEARCH LIMITED, CARE SUPER PTY LTD, STATEPLUS, QSUPER LIMITED, MERCER SUPER PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AMP LIMITED – ASX AMP, ONEPATH AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Premium paid widens for top quality coal

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 16-Dec-16

The contract price for semi-soft coking has been settled at $US171 per tonne for the March 2017 quarter, which is 32 per cent higher than the current contract price. Meanwhile, buyers will pay $US180 per tonne for pulverised coal injection (PCI), which is an increase of 35 per cent. Despite the large rise in contract prices, both commodities are still fetching a significant discount compared with the price of hard coking coal.

CORPORATES
GLENCORE PLC, PEABODY ENERGY CORPORATION, WHITEHAVEN COAL LIMITED – ASX WHC, YANCOAL AUSTRALIA LIMITED – ASX YAL, STANMORE COAL LIMITED – ASX SMR, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, SHAW AND PARTNERS LIMITED, IHS MARKIT

M&A in 2017: All about break-ups, bear hugs and mining

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 & 21 : 16-Dec-16

Data from Dealogic shows that the total value of announced mergers and acquisitions in Australia has topped $US97bn ($A129bn) in 2016, compared with $US93.7bn in 2015. The total value of completed deals has fallen from $US92.7bn to $US82.9bn. Meanwhile, Simon Haddy and Tony Damian of law firm Herbert Smith Freehills expect more large-scale M&A deals in 2017 and strong takeover activity in the resources sector. They also forcast that North American suitors in particular will be active in the Australian market, and expect there to be more emphasis on consortium bids with a view to breaking up companies.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, TATTS GROUP LIMITED – ASX TTS, TABCORP HOLDINGS LIMITED – ASX TAH, MACQUARIE GROUP LIMITED – ASX MQG, KKR AND COMPANY LP, NORTH HAVEN INFRASTRUCTURE PARTNERS, JP MORGAN AND COMPANY INCORPORATED, FIRST STATE SUPER, APN OUTDOOR GROUP LIMITED – ASX APO, OOH!MEDIA LIMITED – ASX OML, BAIN CAPITAL LLC, CAMP AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, AUSGRID PTY LTD, PORT OF MELBOURNE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. TAKEOVERS PANEL

Packer crowns year by folding his China cards

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Original article by John Stensholt, Jessica Gardner
The Australian Financial Review – Page: 1 & 10 : 16-Dec-16

Crown Resorts has flagged its intention to focus on its casinos business in Australia. The group has agreed to sell a 13.4 per cent stake in the Melco Crown Entertainment venture in Macau for $A1.6bn, while it will not proceed wth the Alon casino project in Las Vegas. Crown will use the proceeds from the sale of the Melco stake to reduce debt, pay a special dividend and finance a share buyback. The group still intends to establish a separate real estate investment trust for its property assets.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, MELCO CROWN ENTERTAINMENT LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, ASPINALL’S CLUB LIMITED, DCN GAMES, MELCO INTERNATIONAL DEVELOPMENT LIMITED, CONSOLIDATED PRESS HOLDINGS LIMITED

Swisse parent takes full ownership

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Original article by Simon Evans
The Australian Financial Review – Page: 15 & 20 : 16-Dec-16

Biostime International has paid $A311m to acquire the 17 per cent of Swisse that it did not already own following its takeover of the Australian vitamin maker in 2015. Former Treasury Wines Estate executive Oliver Horn has been appointed as MD of Swisse after CEO Radek Sali advised that he will depart at the end of 2016. Sali is one of the minority shareholders who agreed to accept the buyout offer. He says the process of integrating Swisse with Biostime has gone well.

CORPORATES
SWISSE WELLNESS PTY LTD, BIOSTIME INTERNATIONAL HOLDINGS LIMITED, TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD, DIAGEO PLC, FOSTER’S GROUP LIMITED, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, VITACO HOLDINGS LIMITED – ASX VIT, SHANGHAI PHARMACEUTICAL HOLDING COMPANY LIMITED, PRIMAVERA CAPITAL GROUP, BLACKMORES LIMITED – ASX BKL, NATURE’S CARE

Cash upbeat as job figures defy gloom

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Original article by David Uren
The Australian – Page: 4 : 16-Dec-16

Australia’s official unemployment rate rose from 5.6 per cent in October 2016 to 5.7 per cent in November. It has increased by 0.7 per cent in the last 12 months, although the Budget had forecast a 1.75 per cent increase. The figures show that some 39,300 full-time jobs were created in November, but the number of full-time positions fell by more than 45,000 overall in the first 11 months of the year. The youth unemployment rate has risen from 12.5 per cent to 14.6 per cent.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Foxtel, Village’s landmark win to block pirates

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Original article by Jake Mitchell, David Swan
The Australian – Page: 19 & 22 : 16-Dec-16

The Federal Court of Australia has ruled that ISP must block access to five illegal file-sharing websites within 15 days. Foxtel and Village Roadshow had launched separate legal proceedings in a bid to combat the pirating of films and TV shows. Village Roadshow’s joint CEO Graham Burke has welcomed the judgment, arguing that the local film and TV production industry would collapse if action is not taken against such websites. Foxtel and Village Roadshow will have to pay the ISPs’ costs for blocking the infringing sites.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, VILLAGE ROADSHOW LIMITED – ASX VRL, FEDERAL COURT OF AUSTRALIA, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, TPG TELECOM LIMITED – ASX TPM, IINET LIMITED, M2 GROUP LIMITED, 21ST CENTURY FOX INCORPORATED, WALT DISNEY COMPANY, WARNER BROS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, STAN ENTERTAINMENT PTY LTD, NETFLIX INCORPORATED, ASHURST AUSTRALIA