Author: roymorgansocial

Rally in local bank shares won’t last: CLSA

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Original article by David Rogers
The Australian – Page: 30 : 25-Nov-16

The share prices of Australia’s four major banks have risen by an average of nearly seven per cent since Donald Trump’s presidential election win. However, Brian Johnson of CLSA does not expect this to be sustained, noting that local and international banks are facing a number of headwinds. He adds that Australian bank stocks are expensive compared with their overseas peers, while their common-equity tier-one capital must be increased by some $A27bn.

CORPORATES
CLSA AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Fat margin retailers must fear Amazon

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 24-Nov-16

Roy Morgan Research CEO Michele Levine says Australian retailers with high margins, a large market share and growing online sales will be most vulnerable if Amazon enters the domestic market. Levine, who has presented Roy Morgan’s latest "State of the Nation" report on the retail sector, adds that Aldi and other international grocery chains with physical stores are a greater risk to Coles and Woolworths in the near-term, as most people still do not buy groceries online. Likewise, the low margins of consumer electronics retailers such as JB Hi-Fi means they are less vulnerable to competition from Amazon.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AMAZON.COM INCORPORATED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, LIDL GMBH & CO KG, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BABY BUNTING GROUP LIMITED – ASX BBN, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, CITIGROUP PTY LTD

Get your next home loan by video session

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Original article by James Eyers
The Australian Financial Review – Page: 20 : 24-Nov-16

Hashching is conducting a pilot program for a biometric identity verification service which is to be used in processing mortgage applications. As the program complies with "know your client" banking regulations, it eliminates the need for the presence of the applicant in the bank branch. Hashching co-founder Mandeep Sodhi says he will meet with representatives of the banks to persuade them to make mortgage applications fully digital.

CORPORATES
HASHCHING PTY LTD, ISELECT LIMITED – ASX ISU, MICROSOFT CORPORATION, TYRO PAYMENTS

Clubs face union threat on penalties

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Original article by Joe Kelly
The Australian – Page: 1 & 6 : 24-Nov-16

The Queensland branch of United Voice has sent letters to club managers warning them of the possible consequences of reducing Sunday penalty rates. The union asks clubs to specify their position on Clubs Australia’s application for a reduction in Sunday wages, lodged with the Fair Work Commission. Clubs Queensland CEO Doug Flockhart and club managers have accused the union of using bullying tactics.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, CLUBS QUEENSLAND, CLUBS AUSTRALIA AND NEW ZEALAND INCORPORATED, UNITED VOICE, REDLANDS SPORTING CLUB, MORETON BAY BOAT CLUB, SOUTHPORT SHARKS CLUB

Trade out, quality in as blue chips re-emerge

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Original article by Jessica Sier
The Australian Financial Review – Page: 31 : 24-Nov-16

Australian-listed small-capitalisation stocks have outperformed the broader sharemarket over the last 18 months or so. However, this outperformance has been reversed in the last month, and particularly in the wake of Donald Trump’s presidential election win. There has been renewed support for bank and resources stocks, due to factors such as a rise in government bond yields and commodity prices.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, PERPETUAL INVESTMENTS, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED

Image conscious: how Australians view different department stores

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-Nov-16

A Roy Morgan Single Source survey has found that 22.6% of Australians aged 14+ (3.6 million people) buy something at Kmart in an average four-week period. The survey, which was carried out in the year to June 2016, also shows that 19.5% of Australians (3.1 million) make a purchase at Target and 18.9% (3 million) shop at Big W in an average four weeks. One common denominator shared by the three stores is the perception that each "has a wide choice of products". Almost 42% of Australians think Target fits this description, 45.1% feel the same way about Kmart and 49.2% think Big W has a wide choice of products. Meanwhile, 10.0% of Australians (or 1.6 million people) making a purchase at Myer in an average four weeks and 4.7% (760,000) buying something at David Jones. The most commonly held perception of these stores is less about low prices and more about quality, which evidently impacts on customer volume.

CORPORATES
ROY MORGAN RESEARCH LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED

A fair return on WA’s iron ore would help our GST injustice

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Original article by Brendon Grylls
The Australian Financial Review – Page: 47 : 24-Nov-16

Western Australia now receives just $A0.30 of every dollar of goods and services tax revenue that is generated in the state. The proposed increase in the iron ore levy from $A0.25 per tonne to $A5 is intended to redress this imbalance and help reduce the state’s budget deficit. It should be noticed that the levy does not constitute a new tax on BHP Billiton and Rio Tinto. It has been in place for five decades and has remained unchanged since. The Samarco tailings dam disaster and the Simandou bribery scandal constitute greater sovereign risks.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, VALE SA, SAMARCO MINERACAO SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA

Super win sparks stoush

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Original article by Phillip Coorey, Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 24-Nov-16

Federal Treasurer Scott Morrison has ruled out further changes to superannuation after the Senate passed tax reforms that had been announced in the May 2016 Budget. The changes that take effect on 1 July 2017 include restricting annual concessional contributions to no more than $A25,000 and imposing a $A1.6m cap on super retirement accounts. The reforms are expected to generate total savings of $A3bn over four years. However, the Government has stressed the need for a further $A20bn of Budget repair measures if the nation is to retain its "AAA" credit rating.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, S&P GLOBAL RATINGS

A-League TV rights deal closer

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Original article by John Stensholt
The Australian Financial Review – Page: 23 : 24-Nov-16

Football Federation Australia is tipped to gain up to $A80m a year for TV broadcasting rights under the new deal which takes effect in mid-2017. FFA hopes that one of the three commercial free-to-air networks will buy the rights to show some A-League matches, as SBS currently broadcasts one match per week in a deal with Fox Sports. Bids for the broadcasting rights must be submitted by 9 December 2016, and FFA is believed to be keen to secure a deal before Cricket Australia commences its own negotiations with broadcasters.

CORPORATES
FOOTBALL FEDERATION AUSTRALIA LIMITED, THE A LEAGUE PTY LTD, SOCCEROOS, CRICKET AUSTRALIA, SPECIAL BROADCASTING SERVICE (SBS), FOX SPORTS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, LAGARDERE SPORTS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Recovery looks set to stay the course for year

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Original article by David Rogers
The Australian – Page: 31 : 24-Nov-16

Australia’s S&P/ASX 200 has gained 8.6 per cent since Donald Trump won the US presidential election. The market has not staged a similar rally since December 2015, which followed a global equities sell-down prior to the rise in US interest rates. Financial markets have already priced in the next rise in US rates, so there would seem to be few factors that could potentially stall the domestic bourse’s recent rally.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, UNITED STATES. FEDERAL RESERVE BOARD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, AMCOR LIMITED – ASX AMC, MACQUARIE GROUP LIMITED – ASX MQG, ARISTOCRAT LEISURE LIMITED – ASX ALL, INCITEC PIVOT LIMITED – ASX IPL, TELSTRA CORPORATION LIMITED – ASX TLS, SYDNEY AIRPORT – ASX SYD, RESERVE BANK OF AUSTRALIA