Author: roymorgansocial

The ‘Two-Speed’ economy returns with soaring unemployment and under-employment in Australia’s four smaller States (QLD, WA, SA & Tas)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-Dec-16

Special analysis of Roy Morgan Research real employment estimates in each State over the three months to October 2016 shows that unemployment and under-employment are a growing problem in Australia’s four smallest States of Queensland, Western Australia, South Australia and Tasmania – all four of which now have total unemployment and under-employment above the national average. In contrast, Australia’s two largest States have clearly the healthiest labour markets and New South Wales – with total unemployment and under-employment of 15.2% (down 2.1% from a year ago) is the clear standout. In Victoria 16.0% of the workforce is now unemployed or under-employed – up 1.4% from a year ago but still well below Australia’s national average of 17.6% (up 1.0%). The end of the mining boom has clearly had a big impact on Western Australia – now at 19.6% (up 3.7%) unemployment and under-employment and Queensland 20.3% (up 3.3%), while Australia’s smallest State of Tasmania continues to have a substantial problem with total unemployment and under-employment of 22.5% (up 1.8%). The closure of several large manufacturing plants in South Australia – including the ceasing of Holden Cruze production at its Elizabeth plant in early October has clearly had an impact, and South Australia now has the highest unemployment and under-employment in the nation at 23% (up 5% in a year).

CORPORATES
ROY MORGAN RESEARCH LIMITED, GM HOLDEN LIMITED

Windfall for mining sector could hit $20b

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Original article by Jens Meyer
The Australian Financial Review – Page: 25 : 1-Dec-16

Macquarie Group estimates that financial market analysts will need to increase their 2018 earnings forecasts for resources groups by around 200 per cent if commodity prices remain at around current levels. Macquarie’s Jason Todd notes that this equates to a profit boost of about $A20bn for the sector. He argues that many analysts have factored the rise in commodity prices into their forecasts for 2016-17, but many have neglected to upgrade their earnings forecasts beyond the current financial year.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, STANDARD AND POOR’S ASX 200 INDEX

Resources rent tax will face a ‘sober’ review

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Original article by Joanna Mather, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 1-Dec-16

Treasurer Scott Morrison has revealed plans for an inquiry into Australia’s Petroleum Resources Rent Tax. Government revenue from the tax has fallen sharply in the wake of a downturn in the crude oil price, which has made oil and gas projects less profitable. Shell Australia chairman Andrew Smith argues that revenue from the "super profits"-based tax naturally fluctuates with commodity price changes, and lower government revenue does not mean the PRRT is flawed.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SHELL COMPANY OF AUSTRALIA LIMITED, EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Mega-project days over: Exxon

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 1-Dec-16

ExxonMobil Australia chairman Richard Owen says the energy giant will consider options for undertaking a staged development of the Scarborough gas field. He has told a business lunch in Sydney that ExxonMobil is likely to examine ways to start delivering cash flows from new oil and gas projects at an earlier stage of their development, rather than the so-called "mega-project" approach of recent years. The Gorgon LNG has commenced shipments more than six years after construction commenced.

CORPORATES
EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD

Australia is a key market, says Bank of Tokyo

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Dec-16

The Bank of Tokyo-Mitsubishi intends to expand its presence in Australia. Randy Chafetz, the managing executive officer of the bank, says stagnant conditions in Japan will continue to result in pressure on Japanese companies to seek more promising markets in other countries, including Australia. Earlier in 2016, the bank appointed ex-ANZ executive Drew Riethmuller as head of corporate finance operations for Oceania.

CORPORATES
BANK OF TOKYO-MITSUBISHI (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, AMP LIMITED – ASX AMP

Negative gearing not to blame

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 1-Dec-16

Negative gearing is unfairly blamed for distorting Australia’s residential property market. However, house prices are rising because of record low interest rates. Cheap credit makes property acquisitions attractive to investors. Falling house prices in Perth suggest that property is not necessarily an attractive asset in all circumstances. BIS Shrapnel expects this trend to continue.

CORPORATES
BIS SHRAPNEL PTY LTD, BETASHARES CAPITAL LIMITED

NZ National Party support up again in November as NZ Roy Morgan Government Confidence surges despite series of earthquakes

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 1-Dec-16

A New Zealand Roy Morgan Poll on voting intention has found that support for the ruling National Party rose by 1.5% to 49.5% per cent in November 2016. The poll also shows that support for a potential Labour/Greens alliance has fallen by 0.5% per cent to 37.5%, while the NZ Roy Morgan Government Confidence Rating has risen by 14.5 points to 141 points. Roy Morgan Research executive chairman Gary Morgan notes that the National Party now has its strongest lead since July. In contrast, the poor performance of Labour in November will be a concern for Opposition Leader Andrew Little heading into an election year. Labour has plunged to support of only 23% (down 3.5%) – its lowest support since late 2014.

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL PARTY OF NEW ZEALAND, LABOUR PARTY (NEW ZEALAND), GREEN PARTY OF AOTEAROA NEW ZEALAND, CONSERVATIVE PARTY OF NEW ZEALAND, THE MAORI PARTY, ACT NEW ZEALAND, INTERNET PARTY, MANA PARTY

Delay taints PM’s ABCC victory

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Original article by David Crowe
The Australian – Page: 1 & 5 : 1-Dec-16

The Senate has voted 36-33 in favour of a bill to reinstate the Australian Building & Construction Commission, but existing enterprise bargaining agreements will not have to comply with the new building code until November 2018. The Federal Government agreed to a two-year transition period in order to secure the support of Senator Derryn Hinch, who says he had concerns about the retrospective nature of the code as originally proposed by the Government. Meanwhile, the Opposition’s employment spokesman Brendan O’Connor says the Australian Labor Party will abolish the ABCC if it wins the next federal election.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, LEND LEASE GROUP LIMITED – ASX LLC, PROBUILD PTY LTD, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIA. DEPT OF EMPLOYMENT, ONE NATION PARTY

Australia is a key market, says Bank of Tokyo

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Dec-16

The Bank of Tokyo-Mitsubishi intends to expand its presence in Australia. Randy Chafetz, the managing executive officer of the bank, says stagnant conditions in Japan will continue to result in pressure on Japanese companies to seek more promising markets in other countries, including Australia. Earlier in 2016, the bank appointed ex-ANZ executive Drew Riethmuller as head of corporate finance operations for Oceania.

CORPORATES
BANK OF TOKYO-MITSUBISHI (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, AMP LIMITED – ASX AMP

TV bosses unite against online foe

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Original article by Max Mason
The Australian Financial Review – Page: 9 : 1-Dec-16

The ReThink TV forum in Sydney has featured a panel discussion with the CEOs of Australia’s commercial free-to-air networks and Foxtel. Seven West Media’s Tim Worner conceded that in recent years some TV shows have not been very good, but he is confident that upcoming shows will appeal to viewers. Ten Network’s Paul Anderson noted that the networks are co-operating more in terms of marketing and audience measurement, amid growing competition from digital players.

CORPORATES
THINK TV, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FOXTEL MANAGEMENT PTY LTD, MULTI CHANNEL NETWORK PTY LTD, GOOGLE INCORPORATED, FACEBOOK INCORPORATED