Author: roymorgansocial

In September Australian real unemployment is now 8.5% (up 0.2% in a year) and under-employment 7.7% (up 0.4%)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 11-Oct-16

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate rose fell by 1.9 per cent month-on-month to 8.5 per cent in September 2016, although it has risen by 0.2 per cent year-on-year. Some 1.101 million Australians (up 43,000 since September 2015) are now unemployed. Meanwhile, the Australian workforce has risen to 12,930,000 (up 166,000 since September 2015), and 11,829,000 Australians are employed (up 123,000 in the last 12 months). The number of people who are under-employed has risen by 66,000 in the last 12 months to 1,002,000 (7.7 per cent of the workforce). The official unemployment rate was 5.6 per cent in August 2016. Roy Morgan Research executive chairman Gary Morgan says the extensive loss of full-time jobs in the Australian economy presents a challenge to the Turnbull Government, and these problems are set to intensify over the next year. The Government’s proposed business tax cuts are a key part of its strategy to get the Australian economy moving again.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, QUEENSLAND NICKEL PTY LTD, GM HOLDEN LIMITED, TOYOTA MOTOR CORPORATION AUSTRALIA LIMITED, DICK SMITH HOLDINGS LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY

Foreign debt levels ‘extreme’

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Original article by Adam Creighton
The Australian – Page: 1 & 5 : 10-Oct-16

John Chambers, who heads the sovereign ratings committee of Standard & Poor’s, has warned that Australia’s "AAA" credit rating may be at risk. He has expressed concern about the nation’s rising net foreign debt, noting that it is among the worst of the 130 sovereign nations that the firm rates. S&P downgraded Australia’s credit rating outlook to "negative" in July 2016. Rival rating agencies have also previously expressed concern about Australia’s fiscal position.

CORPORATES
STANDARD AND POOR’S CORPORATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, FITCH RATINGS LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN GREENS, WORLD BANK, INTERNATIONAL MONETARY FUND

Rinehart swoops on Kidman

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Original article by David Crowe, Sarah-Jane Tasker
The Australian – Page: 1 & 2 : 10-Oct-16

Australian businesswoman Gina Rinehart has submitted a $A365m bid to acquire S Kidman & Company in partnership with China-based Shanghai CRED. Rinehart’s Hancock Prospecting would have a 67 per cent stake in the rural property empire, a move that has the support of Senator Nick Xenophon and One Nation’s Pauline Hanson. Shanghai CRED was a member of the Chinese consortium whose bid to acquire Kidman was blocked on national interest grounds earlier in 2016.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, HANCOCK PROSPECTING PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, NICK XENOPHON TEAM, ONE NATION PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DAKANG AUSTRALIA HOLDINGS PTY LTD, PORT ADELAIDE FOOTBALL CLUB

No more rate cuts: Morrison

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 6 : 10-Oct-16

Federal Treasurer Scott Morrison believes that the Reserve Bank of Australia should cease reducing the cash rate, arguing that monetary policy has reached the limit of its effectiveness in stimulating the economy. He says the focus should now shift to fiscal policy. The central bank has reduced the cash rate twice in 2016 but left it on hold at 1.5 per cent in October. Morrison notes that the heads of other central banks have acknowledged the declining effectiveness of monetary policy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, BANK OF ENGLAND, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, GROUP OF TWENTY (G-20), INTERNATIONAL MONETARY FUND, PEOPLE’S BANK OF CHINA, UNITED STATES. FEDERAL RESERVE BOARD

Surging coal puts pricing system in peril

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 10-Oct-16

The spot price of Australian coking coal has risen by 155 since early June 2016, to $US213 per tonne. This compares with a contract price of just $US92.50 per tonne for the September quarter. The spike in the spot price has prompted Japanese steel mills to delay the settlement of contract prices for the December quarter. Macquarie notes that there is a growing push to phase out the quarterly contract system in favour of index pricing, although Whitehaven Coal Paul Flynn says this is unlikely to occur in the near-term.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, WHITEHAVEN COAL LIMITED – ASX WHC, NIPPON STEEL AND SUMITOMO METAL CORPORATION, ANGLO AMERICAN PLC, THE STEEL INDEX LIMITED

Pirates in the line of fire as Village boss goes on warpath

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Original article by Darren Davidson
The Australian – Page: 25 : 10-Oct-16

Village Roadshow MD Graham Burke has vowed to crack down on people who download illegal copies of movies. Burke will address the issue in a speech at the annual Australian International Movie Convention, in which he will highlight the impact of piracy on the local film industry. Burke notes that although the advent of subscription video-on-demand services has reduced the level of piracy among Australian adults, there has been big growth in piracy among the 12-17 age group.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD

Tech listings star as IPOs outperform

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Original article by Chris Kohler
The Australian – Page: 20 : 10-Oct-16

Australia’s benchmark S&P/ASX 200 gained 3.9 per cent during the September 2016 quarter. However, data from OnMarket shows that the 24 IPOs during the quarter achieved an average return of 28.2 per cent over the period, and an average of 28.6 per cent in their first week as a listed company. Technology stocks in particular have performed well, although exceptions include Kogan.com, which is trading below its issue price.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, ONMARKET, KOGAN.COM LIMITED – ASX KGN, VIVA ENERGY REIT – ASX VVR, MICHAEL HILL INTERNATIONAL LIMITED – ASX MHJ, PROPERTYLINK GROUP LIMITED – ASX PLG, SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, QANTM INTELLECTUAL PROPERTY LIMITED – ASX QIP

New Free TV boss Savill to push for cuts in broadcast licence fees

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 10-Oct-16

Brett Savill, who has succeeded Julie Flynn as CEO of Free TV Australia, says the TV sector is likely to undergo greater change in the next 5-10 years than the switch from analogue to digital. However, he notes that TV is still the only medium than can attract the large audiences that viewed the recent Australian Football League and National Rugby League grand finals. Savill is expected to lobby the Federal Government for a further reduction in broadcasting licence fees, which Communications Minister Mitch Fifield has indicated is under active consideration.

CORPORATES
FREE TV AUSTRALIA LIMITED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN NETWORK LIMITED, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, BAI COMMUNICATIONS, BROADCAST AUSTRALIA PTY LTD, PRICEWATERHOUSECOOPERS, KORN/FERRY INTERNATIONAL, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE

Amazon all set to flow here

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 10-Oct-16

Amazon has declined to comment on speculation that its Prime Video subscription video-on-demand service could be launched in Australia in November 2016, to coincide with the global debut of "The Grand Tour". The program is hosted by former "Top Gear" presenters Jeremy Clarkson, Richard Hammond and James May. Amazon may opt to delay the local launch of its SVOD service until 2017, to enable it to build up a larger range of original and licensed content.

CORPORATES
AMAZON.COM INCORPORATED, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, PRESTO ENTERTAINMENT PTY LTD, CBS CORPORATION, SHOWTIME, FOXTEL MANAGEMENT PTY LTD, HBO, GOODMAN GROUP – ASX GMG, SANDVINE INCORPORATED

1 in 4 car buyers watch the Bathurst 1000 – and the auto makes in the race hold special appeal

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Oct-16

A Roy Morgan Single Source survey has found that 2,289,000 Australians aged 14+ intend to buy a new car in the next four years, while 602,000 plan to purchase their next car in the next 12 months. The survey also shows that the 3.8 million people who watch the Bathurst 1000 on TV are 25 per cent more likely than the average Australian to be in the market for a new car. Toyota and Mazda are the top two makes of choice overall as well as among the subset of Bathurst 1000 viewers, but race regulars Holden, Ford and Nissan get the largest increases in popularity among the event’s fans. They are 54 per cent more likely more likely to buy a Holden, 34 per cent more likely to buy a Ford and 23 per cent more likely to buy a Nissan.

CORPORATES
ROY MORGAN RESEARCH LIMITED, GM HOLDEN LIMITED, FORD MOTOR COMPANY AUSTRALIA LIMITED, NISSAN MOTOR COMPANY (AUSTRALIA) PTY LTD, TOYOTA MOTOR CORPORATION AUSTRALIA LIMITED, MAZDA AUSTRALIA PTY LTD, VOLVO CAR AUSTRALIA PTY LTD