Author: roymorgansocial

Fortescue shares sink as Vale deal stalls

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Original article by James Thomson
The Australian Financial Review – Page: 21 : 15-Sep-16

Vale’s Peter Poppinga says a proposed iron ore blending joint venture with Fortescue Metals Group is unlikely to be finalised before the end of 2016. He says negotiations between the two groups are taking longer than anticipated, with the pricing of their iron ore products believed to be a key issue. Fortescue CEO Nev Power has been more upbeat, suggesting in July that the deal could be finalised in the near-term. Fortescue shares have gained 153 per cent so far in 2016.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA, BLOOMBERG LP

ANZ-Roy Morgan Australian Consumer Confidence rebounds to 118.1 (up 3.8pts) after strong GDP figures

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 14-Sep-16

ANZ-Roy Morgan Australian Consumer Confidence has risen by 3.3 per cent to 118.1 in the week ending 11 September 2016. The four-week moving average ticked up to 118.2, the highest level since late 2013. The GDP report for the June quarter, which highlighted the underlying strength of the Australian economy, was likely behind part of the rise in consumers’ optimism. The bounce in confidence was largely driven by households’ views of the economic outlook. Households’ views of the economic outlook in the next 12 months rose by 8.1 per cent, while consumers’ views of their current finances rose by 1.6 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Guzman y Gomez spice up the Customer Satisfaction Awards

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 14-Sep-16

Guzman y Gomez has won the Roy Morgan Research Customer Satisfaction Award for July 2016 in the category of Quick Service Restaurants. It had a customer satisfaction rating of 92 per cent among Australians aged 14+ who ate there in an average four weeks during the year to July. Grill’d was second with a customer satisfaction rating of 90 per cent, followed by Pizza Capers (88 per cent). Meanwhile, analysis of Quick Service Restaurant satisfaction by Roy Morgan’s Food Segments shows that 68 per cent of people in the "Take-it-aways" category visit a quick-service restaurant in an average four-week period, making them the most likely of the seven food segments to do so.

CORPORATES
ROY MORGAN RESEARCH LIMITED, GUZMAN Y GOMEZ PTY LTD, GRILL’D PTY LTD, PIZZA CAPERS, OPORTO PTY LTD, McDONALD’S AUSTRALIA LIMITED, SIZZLER RESTAURANTS AUSTRALIA LIMITED, CHICKEN TREAT (AUSTRALIA) PTY LTD, HUNGRY JACK’S PTY LTD

Gary Morgan comment on this week’s strong Consumer Confidence result

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Original article by Gary Morgan, Roy Morgan Research
Market Research Update – Page: Online : 14-Sep-16

This week’s rise in the ANZ-Roy Morgan Consumer Confidence Index, up 3.8pts to 118.1, comes after a strong Australian GDP result last week which showed the Australian economy growing at an annual rate in the year to June of 3.3 per cent. This is the fastest annual GDP growth for the Australian economy for four years since 2012. Although this week’s increase in Consumer Confidence might seem to contradict the fall in the Roy Morgan Business Confidence – down 7.5pts to 108.6 in August, released yesterday, the two indicators are measured over a different time period (the month of August compared to the weekend just past) and have therefore been impacted by different socio-economic drivers.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

JB Hi-Fi bets big on Good Guys

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Original article by Eli Greenblat
The Australian – Page: 19 & 22 : 14-Sep-16

JB Hi-Fi will finance the acquisition of The Good Guys via a capital raising and a $A450m debt facility. The listed consumer electronics and home entertainment group will raise $A394m from investors, with the new stock to be issued at $A26.20 apiece. JB Hi-Fi anticipates annual cost savings of between $A15m and $A20m as a result of the $A870m acquisition of The Good Guys. The deal will increase JB Hi-Fi’s sales to $A6bn a year and lift its share of the consumer electronics and household appliances market.

CORPORATES
JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, OPHIR ASSET MANAGEMENT PTY LTD, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Woodside would welcome Scarborough’s fare

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Original article by Paul Garvey
The Australian – Page: 22 : 14-Sep-16

Woodside Petroleum recently secured a deal to acquire 50 per cent of BHP Billiton’s stake in the Scarborough gas fields off the coast of Western Australia. There has been speculation that gas from Scarborough could potentially be processed at Woodside’s LNG plants, rather than using floating LNG technology. Woodside COO Michael Utsler says it is up to project operator ExxonMobil to broach the subject of options for processing Scarborough gas.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, EXXONMOBIL CORPORATION, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD

Families to wear cost of budget savings deal

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Original article by David Crowe
The Australian – Page: 1 & 4 : 14-Sep-16

The Australian Government will press ahead with $A6.3bn worth of savings measures after the Opposition agreed to support its proposed changes to family tax benefits. The Australian Labor Party will support 20 of the 24 savings initiatives that were included in the Government’s "omnibus" bill, with both sides of politics agreeing to some concessions. The Government has backed down on measures such as abolition of the clean energy supplement for welfare recipients.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN RENEWABLE ENERGY AGENCY

FMG closer to investment grade rating

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 14-Sep-16

Pure-play iron ore producer Fortescue Metals Group will repay $US700m ($A925m) worth of debt that is scheduled to mature in 2019. This will cut its debt obligations for 2019 to just $US2.88bn. Fortescue repaid $US2.9bn of debt in 2015-16, and the latest move will reduce its interest costs by $US26 a year. Peter O’Connor of Shaw & Partners expects Fortescue to further reduce its debt in the current financial year. Fortescue’s credit rating remains below investment grade, and Matthew Moore of Moody’s has ruled out a re-rating at present.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, RBC CAPITAL MARKETS

Fund managers to Fed: it’s time to raise rates

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Original article by Vesna Poljak
The Australian Financial Review – Page: 13 & 27 : 14-Sep-16

Financial markets have priced in a 22 per cent chance that the US Federal Reserve will increase interest rates in September 2016, while a December increase is rated a 57 per cent chance. PM Capital’s Uday Cheruvu expects the US central bank to tighten monetary policy at some point, noting that there are sufficient grounds for a rate rise. Meanwhile, Randal Jenneke of T. Rowe Price says Australian yield stocks – which bore the brunt of bearish sentiment on 12 September – are likely to fall further.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, PM CAPITAL LIMITED, T ROWE PRICE GROUP INCORPORATED, STANDARD AND POOR’S ASX 200 INDEX, EUROPEAN CENTRAL BANK, BANK OF JAPAN, BANK OF ENGLAND

Narev seeks spirit of ’91 reform

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Original article by Michael Bennet
The Australian – Page: 19 & 23 : 14-Sep-16

Commonwealth Bank of Australia CEO Ian Narev has used the 25th anniversary of the banking major’s sharemarket float to call for reforms that will promote long-term economic growth. He says the government of the day made the right decision in selling a publicly-owned bank. CBA shares have fallen by more than 10 per cent in recent weeks, with the stock closing at $A69.50 on 13 September 2016. However, investors paid just $A5.40 per share in the 1991 float.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BELL POTTER SECURITIES LIMITED