Author: roymorgansocial

Central bank signals more hikes next year

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Original article by Harriet Torry
The Australian – Page: 30 : 16-Dec-16

The yield on 10-year US treasuries rose to 2.523 per cent and the Dow Jones Industrial Average retreated after the Federal Reserve indicated that it is likely to lift the cash rate by 75 basis points in 2017. The central bank had been widely tipped to raise the cash rate by 25 basis points in December 2016, but policymakers had signalled in September that rates were likely to rise just twice in 2017. Federal Reserve officials have cited the outlook for inflation and the improving labour market as factors that prompted only the second rate rise in the last decade. Originally published in "The Wall Street Journal".

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, JP MORGAN CHASE AND COMPANY, WELLS FARGO BANK, BANK OF AMERICA CORPORATION, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, NAVY FEDERAL CREDIT UNION, MORTGAGE BANKERS’ ASSOCIATION OF AMERICA, FIRST PORTLAND MORTGAGE CORPORATION, ALASKA RETIREMENT MANAGEMENT BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

New Prime Minister Bill English must find a solution to New Zealand’s growing ‘Housing Crisis’ – the largest problem facing New Zealanders in late 2016

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 15-Dec-16

A special New Zealand Roy Morgan telephone survey, which was conducted in October 2016, shows that 40% of respondents (down 5% since July) identify Government/Public Policy/Housing issues as the most important problems facing New Zealand. Within this bundle of concerns, Housing affordability/Increasing house prices (17%) and Housing shortage/Homelessness (10%) are the most prominent. Meanwhile, 31% of New Zealanders identify Economic Issues as the most important problems facing the nation (down 1%). The survey also shows that 30% of New Zealanders regard War & Terrorism/Security issues/Refugee Crisis as the biggest problems facing the world (down 1%).

CORPORATES
ROY MORGAN RESEARCH LIMITED

Macquarie rolls the dice on Tatts

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 & 23 : 15-Dec-16

Pacific Consortium has offered between $A4.40 and $A5 per share for Tatts Group. The consortium comprises Macquarie Capital, State Super, Morgan Stanley Infrastructure and Kohlberg Kravis Roberts. The bid is composed of two schemes of arrangement which involve the separation of Tatts Group’s wagering arm from its lotteries business. Tatts is also being pursued by Tabcorp, whose offer values Tatts at $A4.49 a share.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, MACQUARIE CAPITAL PTY LTD, STATE SUPER SCHEME, MORGAN STANLEY AUSTRALIA LIMITED, KOHLBERG KRAVIS ROBERTS AND COMPANY, PERPETUAL LIMITED – ASX PPT, TAYLOR COLLISON LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Government warned about risky NBN loan

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Original article by Primrose Riordan
The Australian Financial Review – Page: 7 : 15-Dec-16

The Parliamentary Budget Office estimates that the National Broadband Network will have an $A8.8 billion negative impact on Australia’s net worth. The PBO also warns in a report released on 14 December 2016 that NBN CO could experience difficulties with raising enough capital to pay back a loan of $A19.5 billion from the Federal Government in November. Finance Minister Mathias Cormann says the PBO’s doubts are unwarranted.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, NBN CO LIMITED

Super-union not finished yet with mergers

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Original article by Ewin Hannan
The Australian – Page: 4 : 15-Dec-16

The Construction, Forestry, Mining & Energy Union (CFMEU) is merging with the Maritime Union of Australia (MUA). A memorandum of understanding for the merger was signed on 14 December 2016. CFMEU national secretary Michael O’Connor and MUA national secretary Paddy Crumlin said more mergers will be considered if they are advantageous to members.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA, AUSTRALIA. DEPT OF EMPLOYMENT, TEXTILE, CLOTHING AND FOOTWEAR UNION OF AUSTRALIA

Nova set to return more than nickel and dimes as prices rise

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Original article by Paul Garvey
The Australian – Page: 22 : 15-Dec-16

Independence Group has made the first shipment of nickel concentrate from the Nova mine in Western Australia, which it acquired in the 2015 takeover of Sirius Resources. Independence CEO Peter Bradford notes that the commencement of construction work at the Nova deposit coincided with a downturn in the mining industry, which in turn reduce the cost of developing the project. He adds that Independence is now looking at potential acquisitions, including gold assets.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, SIRIUS RESOURCES NL

AAA could go at any time

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 15-Dec-16

Moody’s Investors Service and S&P Global Ratings have signalled that Australia’s triple-A credit rating could potentially be downgraded on 19 December 2016, following the release of the mid-year budget update. Both credit rating agencies have previously warned that the triple-A rating could be at risk if the Government fails to meet its target of 2020-21 for returning the Budget to surplus. Meanwhile, Adam Boynton of Deutsche Bank has forecast that nominal GDP growth will be 3.25 per cent in 2017-18, compared with the May Budget forecast of five per cent.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS, DEUTSCHE BANK AG, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

Dodgy ABN’s ‘key to crackdown’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 15-Dec-16

The Australian Government’s taskforce on the cash economy will release an interim report in March 2017. The taskforce will be led by Michael Andrew, who says the large number of Australian Business Numbers that have been issued but have never incurred a tax liability is a major concern. He has also flagged the potential to impose harsher penalties as part of the crackdown on the cash economy, and adds that the $A100 note would not be missed by most consumers if it were withdrawn from circulation.

CORPORATES
KPMG, SWINBURNE UNIVERSITY OF TECHNOLOGY, RESERVE BANK OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA

APN calls for broad study of $1.6bn deal

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Original article by Jake Mitchell, Daniel Palmer
The Australian – Page: 21 : 15-Dec-16

The Australian Competition & Consumer Commission will undertake a public review of the proposed merger between APN Outdoor Group and oOh!Media. APN Outdoor chairman Doug Flynn argues that the ACCC should take into account the broader advertising market rather than focusing on the out-of-home segment. The $A1.6bn scheme of arrangement merger has the support of both companies’ boards, while it must also be approved by oOh!Media shareholders.

CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, OOH!MEDIA LIMITED – ASX OML, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, PERPETUAL LIMITED – ASX PPT, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, TWITTER INCORPORATED, SEVEN WEST MEDIA LIMITED – ASX SWM, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, UBS HOLDINGS PTY LTD, CADENCE ADVISORY, HIGHBURY PARTNERSHIP PTY LTD, MACQUARIE CAPITAL PTY LTD, MEDIAWORKS (NZ) LIMITED

Santos surprises with $1.5b capital raising

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 15-Dec-16

Australian-listed oil and gas producer Santos will issue new shares at $A4.06 apiece in a $A1.5bn equity raising. It will comprise a $A1.04bn institutional placement and a $A500m share purchase plan for existing shareholders. Santos had previously raised some $A3bn in late 2015. Santos recently revealed plans to shift non-core assets to a separate division in order to focus on its key projects. The group’s shares closed at $A4.41 on 14 December 2016.

CORPORATES
SANTOS LIMITED – ASX STO, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, JB NORTH AND COMPANY PTY LTD