Author: roymorgansocial

Innovation agenda must embrace mining: Costello

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 13-Sep-16

Former treasurer Peter Costello has used a Minerals Council of Australia function to stress that the mining industry has a role in the Federal Government’s "innovation agenda". He argued that the so-called "new economy" needs traditional industries such as mining and agriculture. Costello also criticised a push by Western Australian National Party leader Brendon Grylls to increase the iron ore levy paid by BHP Billiton and Rio Tinto from $A0.25 per tonne to $A5.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Super cuts ‘will leave people poorer’

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Original article by Sarah Martin
The Australian – Page: 4 : 12-Sep-16

The Institute of Public Affairs warns that the Australian Government’s proposed superannuation tax reforms will adversely affect the retirement income of the people it targets. Simon Breheny of the IPA says the reforms will slash the retirement income of middle-income earners to about 58 per cent of their pre-retirement earnings. In contrast, he notes that people on low incomes can expect to receive almost 90 per cent of their pre-retirement income. Breheny argues that the Government should provide super tax relief for people on middle incomes.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA

Union deals make project costs double US

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Original article by Rick Wallace
The Australian – Page: 5 : 12-Sep-16

A report produced by the Menzies Research Centre and the HR Nicholls Society highlights the impact that union influence has on construction costs in Australia. The report concludes that the cost of building infrastructure such as hospitals, schools and airports is typically much higher than in the US. It cites a range of factors, including high labour costs and excessive wage claims, the pattern bargaining system and rostered days off. The report supports measures such as reinstatement of the Australian Building & Construction Commission.

CORPORATES
THE MENZIES RESEARCH CENTRE LIMITED, HR NICHOLLS SOCIETY, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, BUSINESS COUNCIL (UNITED STATES), AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA

Clearances strong as auction numbers rise

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Original article by Michael Bleby
The Australian Financial Review – Page: 7 : 12-Sep-16

Data from CoreLogic shows that Sydney boasted a residential auction clearance rate of 80 per cent in the week to 10 September 2016, compared with 80.7 per cent in the previous week. The clearance rate in Melbourne fell from 79.3 per cent to 78.7 per cent, while the national clearance rate was down from 77.1 per cent to 76.4 per cent. Kevin Brogan of CoreLogic expects more homes to be listed for auction in spring.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ, BELLE PROPERTY PTY LTD

ARM takeover spurs back-office cuts

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Original article by Jake Mitchell
The Australian – Page: 23 : 12-Sep-16

APN News & Media’s deal to sell its Aust­ralian Regional Media division to News Corp Australia will be put to shareholders on 16 September 2016. ARM publishes regional and community newspapers in New South Wales and Queensland, and employs about 1,200 people. News Corp is expected to retrench about 300 staff if the deal proceeds, although these are likely to include some staff in its own regional operations in order to reduce duplication.

CORPORATES
APN NEWS AND MEDIA LIMITED – ASX APN, AUSTRALIAN REGIONAL MEDIA, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN COMMUNITY NEWSPAPERS, PLATINUM EQUITY HOLDINGS, FETCH PLUS INCORPORATED PTE LTD, HERALD AND WEEKLY TIMES LIMITED

Ore fears as China steel hits its peak

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Original article by Rowan Callick
The Australian – Page: 17 & 18 : 12-Sep-16

China Metallurgical Industry Planning & Research Institute president Li Xinchuang expects the iron ore price to remain within a range of $US50 to $US60 per tonne for some time. He also says steel production in China peaked in 2014, when output totalled 823 million tonnes. Steel production fell to 804 million tonnes in 2015. Meanwhile, China’s steel exports have risen in recent years while domestic consumption has declined, while Li has criticised the Australian Government’s recent stance on Chinese investment.

CORPORATES
CHINA METALLURGICAL INDUSTRY PLANNING AND RESEARCH INSTITUTE, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Central bank fears spook markets

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Original article by Jacob Greber, Sally Rose, Jessica Sier
The Australian Financial Review – Page: 1 & 6 : 12-Sep-16

Australia’s S&P/ASX 200 Index has shed 4.4 per cent since the start of August 2016, and a 2.5 per cent downturn in the S&P 500 is expected to push the local market lower on 12 September. The US market was sold down after a Federal Reserve official suggested that the strength of the US economy could warrant an interest rate cut in the near-term. This prompted renewed support for the US dollar and a sharp rise in bond yields. Meanwhile, Nick Bishop of Aberdeen Asset Management expects an upturn in global financial market volatility in the December quarter.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, ABERDEEN ASSET MANAGEMENT LIMITED, CITIGROUP PTY LTD, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA

Howard urges PM on tax, IR reform

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 12-Sep-16

Ex-prime minister John Howard believes that Malcolm Turnbull can successfully lead the Coalition to the next federal election, but stresses that he must have a united team. Howard has also identified industrial relations and tax reform as policies that the Federal Government must pursue, although Turnbull says both issues are on the legislative agenda. Meanwhile, Treasurer Scott Morrison says the government has had "constructive" talks with the Opposition regarding Budget savings measures.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, ONE NATION PARTY

LNG plants set for $20bn energy boom

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 12-Sep-16

LNG producers may commit to new projects in coming years in order to capitalise on the fact that the North West Shelf and Darwin LNG processing plants will soon have spare capacity. Wood Mackenzie expects the plants to have spare capacity by 2021, as production at these projects declines. Saul Kavonic of Wood Mackenzie says the Scarborough or Greater Gorgon gas fields could potentially yield low-cost LNG by using the North West Shelf infrastructure.

CORPORATES
WOOD MACKENZIE, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, EXXONMOBIL CORPORATION, DARWIN LNG PTY LTD, NORTH WEST SHELF LNG PTY LTD, SANTOS LIMITED – ASX STO, CONOCOPHILLIPS, CITIGROUP PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, KAROON GAS AUSTRALIA LIMITED – ASX KAR

Miners lash Joyce’s ore comments

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 12-Sep-16

Minerals Council of Australia CEO Brendan Pearson has described a proposed levy on iron ore production in Western Australia as a "bad idea" that will adversely affect both the sector and suppliers. Federal National Party leader Barnaby Joyce has been criticised after saying that he understood the motivations for state counterpart Brendon Grylls in proposing that the iron ore levy paid by BHP Billiton and Rio Tinto be increased from $A0.25 per tonne to $A5.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BROADCASTING CORPORATION