Author: roymorgansocial

Motorcycle racing’s declining but dedicated TV audience (and some good news for James Boag and Bundaberg Rum!)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Oct-16

A Roy Morgan Single Source survey has found that 7.0 per cent of Australians aged 14+ watched motorcycle racing on TV in the year to June 2016, compared with 10.3 per cent in the year to June 2012. The proportion of male viewers who watch motorcycle racing has fallen from 15.8 per cent to 11.1 per cent, while the proportion of female viewers has declined from 4.9 per cent to 3.1 per cent. The survey also shows that 56.8 per cent of people who compete in motorbike racing themselves also watch the sport on TV, while 29.9 per cent of motorbike owners and 34.0 per cent of people who intend to buy a motorbike in the next 12 months watch the sport on TV.

CORPORATES
ROY MORGAN RESEARCH LIMITED, J BOAG & SON LIMITED, BUNDABERG RUM COMPANY, RED BULL AUSTRALIA PTY LTD, GENOVESE COFFEE

Lawsuit looms over wind shutdown

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Original article by Rebecca Puddy, Annabel Hepworth
The Australian – Page: 1 & 6 : 20-Oct-16

Litigation funder IMF Bentham will consider a class action on behalf of businesses that were affected by the state-wide power outage which occurred in South Australia on 28 September 2016. The Australian Energy Market Operator issued an update to its preliminary report on 19 October. AEMO identified six disturbances in the network which caused voltage problems at nine wind farms. Companies are assessing the impact of the blackout on their operations.

CORPORATES
IMF BENTHAM LIMITED – ASX IMF, AUSTRALIA. DEPT OF INDUSTRY, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, OZ MINERALS LIMITED – ASX OZL, CLEAN ENERGY COUNCIL LIMITED, PACIFIC HYDRO LIMITED, SA POWER NETWORKS, AGL ENERGY LIMITED – ASX AGL, NYRSTAR AUSTRALIA PTY LTD, KORDA MENTHA AND COLLEAGUES PTY LTD, MANUFACTURING AUSTRALIA LIMITED, NEOEN AUSTRALIA

Census meltdown to cost $30m

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Original article by Rosie Lewis
The Australian – Page: 2 : 20-Oct-16

The shutdown of the Australian Bureau of Statistics’ census website on 9 August 2016 will cost up to $A30 million. Chief statistician David Kalisch has told the Senate estimates committee that $A20m has already been spent. He expects the ABS to spend another $A10m. IBM stated in a submission to the committee that the website was ready to be reactivated within three hours but the actions of other organisations extended the delay to 40 hours.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN SIGNALS DIRECTORATE, IBM AUSTRALIA LIMITED, NEXTGEN PTY LTD

Origin Energy in recovery mode after $25b APLNG venture

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 20-Oct-16

Just 3.02 per cent of votes cast at Origin Energy’s 2016 AGM rejected the group’s remuneration report, although an equities grant to outgoing CEO Grant King attracted a "no" vote of 16.21 per cent. King told shareholders that the company’s investment in the Australia Pacific LNG project had taxed its resources, and a stake of 30 per cent rather than 37.5 per cent may have been appropriate. However, King is upbeat about Origin’s outlook. He will be succeeded by Origin veteran Frank Calabria.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, RBC CAPITAL MARKETS

Trump win would trigger volatility: fund managers

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 20-Oct-16

A survey of global fund managers shows that 53 per cent expect financial market volatility to increase if Republican Party candidate Donald Trump wins the US presidential election. The Bank of America Merrill Lynch survey also found that 55 per cent of respondents think equities and bonds are overvalued, while 44 per cent anticipate that treasury yields will be the biggest influence on share prices during the next six months.

CORPORATES
BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, REPUBLICAN PARTY (UNITED STATES)

Tabcorp-Tatts double up with $11bn punt

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 & 22 : 20-Oct-16

Tabcorp’s takeover offer for Tatts Group comprises 0.80 of its shares and a $A042.5 cash payment for each of the target’s shares. Tatts shareholders will control 58 per cent of the merged company if the deal is approved. It has been endorsed by the boards of both companies, as well as major institutional investors such as Perpetual and AustralianSuper. The merged group would boast a market capitalisation of about $A8.6bn and annual revenue of more than $A5bn. Tabcorp CEO David Attenborough would head the merged company.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, PERPETUAL LIMITED – ASX PPT, AUSTRALIANSUPER PTY LTD, NORTHCAPE CAPITAL PTY LTD

Turnbull lifts sights on gun imports

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Original article by David Crowe
The Australian – Page: 4 : 20-Oct-16

The Coalition is divided on the issue of the relaxation of gun laws. Prime Minister Malcolm Turnbull has accused the Australia Labor Party of "demonising" gun owners. Queensland Premier Annastacia Palaszczuk has warned against changes in regulations which would allow the importation of seven-shot Adler gun into Australia, as suggested by Liberal Democratic Party senator David Leyonhjelm.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL DEMOCRATIC PARTY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, VICTORIA. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, GUN CONTROL AUSTRALIA

Mortgage price war ‘will hurt dividend’

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Original article by Michael Bennet
The Australian – Page: 23 : 20-Oct-16

Scott Manning of JP Morgan says stricter capital requirements and a rise in the customer churn rate contributed to a decline in the four major banks’ return on equity from mortgages between 2010 and 2015. He adds that the return from banks’ non-mortgage products fell to the same level as their cost of capital during this period. Manning warns that banks’ dividends will be vulnerable if the return on equity from mortgages falls any further, and he argues that banks should be offering tailored mortgage interest rates that reflect each borrower’s risk profile.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DIGITAL FINANCE ANALYTICS, BANK OF QUEENSLAND LIMITED – ASX BOQ

BHP flags end of slump

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Original article by Matt Chambers
The Australian – Page: 21 : 20-Oct-16

BHP Billiton’s production report for the September 2016 quarter shows that copper and oil output fell during the period, while there was a modest rise in metallurgical coal output and iron ore production was steady. Meanwhile, CEO Andrew Mackenzie noted that there are indications that commodity markets are starting to rebalance. Fortescue Metals Group chairman Andrew Forrest recently suggested that the market has bottomed.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO

Small-cap party could end in tears when the next crash comes

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 20-Oct-16

The Dow Jones Industrial Average has gained almost 944 per cent since the Black Monday sharemarket crash of October 1987, while the S&P 500 has risen by 854 per cent. In contrast, Australia’s All Ordinaries Index has increased by nearly 245 per cent. However, analysis by Richard Coppleson of Bell Potter suggests that when dividends are taken into account the All Ordinaries Accumulation Index has only slightly underperformed the S&P 500. Meanwhile, Coppleson warns that the current rally in small-cap stocks is unsustainable and a major fallout is inevitable.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, BELL POTTER SECURITIES LIMITED, RESERVE BANK OF AUSTRALIA