Author: roymorgansocial

Australian real unemployment 9.6% in June as new Government takes office

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

The good news for the re-elected Turnbull Government is that unemployment fell 1.1% to 9.6% in June 2016 – although this is still well above the current ABS figure for May (5.7%). However, the rising levels of employment were led by an increase in part-time employment (3,951,000, up 208,000 from June 2015) while full-time employment was down 28,000 to 7,792,000. Increasing part-time employment leads directly to increases in under-employment – now at 8.3% (up 0.9% since May 2016). In June a total of 2.326 million Australians (17.9% of the workforce) were either unemployed or under-employed. The fall in unemployment in June almost evenly matched by rising levels of under-employment was observed in last year’s June unemployment estimates.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS

ANZ-Roy Morgan Australian Consumer Confidence falls further – down 0.6pts to 115.2

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Jul-16

ANZ-Roy Morgan Australian Consumer Confidence has fallen for the third week in a row, down 0.5 per cent to 115.2 in the week ending 10 July 2016. Uncertainty related to the election result and lingering concerns over the global outlook likely remain key factors behind the recent decline. Last week’s downgrade from Standard & Poor’s to the outlook for Australia’s credit rating – from stable to negative – could also have weighed on sentiment. Consumers’ views of their current finances edged 0.3 per cent higher, but households’ views of the economic outlook in the next 12 months fell by 4.1 per cent.

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

Retirees urged to tap into home equity

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 13-Jul-16

AustralianSuper CEO Ian Silk says the superannuation fund may seek to offer a broader range of retirement income products in coming years. This could include home equity release products, which allow homeowners to capitalise on the value of their home without the risks associated with reverse mortgages. Silk concedes that there are significant problems with some retirement income products that are currently available, and says the industry must work hard to address the issue.

CORPORATES
AUSTRALIANSUPER PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Property group, Xenophon urge CGT reform

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Original article by Michael Bleby
The Australian Financial Review – Page: 5 : 13-Jul-16

The Australian Labor Party estimated that the capital gains tax break on property sales will cost $A8.6bn in lost government revenue by 2019, compared with $A4.2bn in 2014. Senator Nick Xenophon believes that the Federal Government should introduce CGT reforms as part of its strategy to reduce the Budget deficit. The Property Council of Australia supports reducing the CGT concession from 50 per cent at present to 40 per cent, compared with Labor’s proposal to reduce it to 25 per cent.

CORPORATES
AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, PROPERTY COUNCIL OF AUSTRALIA LIMITED, GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, STANDARD AND POOR’S CORPORATION, HSBC AUSTRALIA HOLDINGS PTY LTD

Labor to hold post mortem into Queensland failures

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Original article by Mark Ludlow
The Australian Financial Review – Page: 5 : 13-Jul-16

At best, the Australian Labor Party is likely to win seven Queensland seats in the 2016 federal election, compared with its expectations of up to 12. The Coalition is expected to have 22 seats in Queensland, despite a 2.5 per cent swing against it. Labor’s disappointing performance in Queensland will be closely scrutinised as part of a broader review of its election campaign.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, ONE NATION PARTY

PM stares down backbench revolt on super reforms

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Original article by David Crowe
The Australian – Page: 1 & 5 : 13-Jul-16

Prime Minister Malcolm Turnbull is resisting a push within the Coalition’s ranks to revise some elements of its superannuation reforms. The issue will be on the agenda of the party-room meeting on 18 July, with the proposed lifetime cap on non-concessional super contributions in particular a focus for Coalition MPs who want changes to the super policy. Meanwhile, the Australian Labor Party has given indications that it may support the lifetime cap if is not applied retrospectively.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, LIBERAL-NATIONAL PARTY OF QUEENSLAND, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED

There’s still value on Wall Street, fund managers say

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 13-Jul-16

Perpetual’s Garry Laurence says the US sharemarket may have peaked, after the S&P 500 reached a new high in mid-July 2016. He anticipates further market volatility, and identifies Merck, Sanofi, Oracle, EMC and Zhaopin as the best buying opportunities among US-listed stocks. Wingate Asset Management’s Chad Padowitz notes that some sectors of the US sharemarket offer better value than others at present, and he favours stocks such as Citigroup, Bank of America, Allergan and Sanofi.

CORPORATES
PERPETUAL LIMITED – ASX PPT, WINGATE ASSET MANAGEMENT PTY LTD, STANDARD AND POOR’S 500 INDEX, MERCK AND COMPANY INCORPORATED, SANOFI PHARMACEUTICALS, ORACLE CORPORATION, EMC CORPORATION, ZHAOPIN LIMITED, CITIGROUP INCORPORATED, BANK OF AMERICA CORPORATION, ALLERGAN INCORPORATED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, BANK OF ENGLAND, BANK OF JAPAN, RESERVE BANK OF AUSTRALIA, RESERVE BANK OF NEW ZEALAND, JAPAN. OFFICE OF THE PRIME MINISTER

‘Something’s gotta give’: rising stocks, bonds and gold sound alert

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Original article by Michael Roddan
The Australian – Page: 19 & 27 : 13-Jul-16

The Australian sharemarket has gained six per cent since reaching its recent low in the wake of Great Britain’s vote to leave the European Union. Meanwhile, the S&P 500 has risen by 16 per cent since February 2016, and it reached a record high in mid-July. Traditional safe haven investment classes are also in strong demand, with the yield on 10-year Australian government bonds remaining close to a record low and the gold price testing its highest level in more than two years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, BAKER STEEL CAPITAL MANAGERS LLP, UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED, PERPETUAL LIMITED – ASX PPT, JAPAN. OFFICE OF THE PRIME MINISTER, NIKKEI 225 INDEX

LNG exports jump despite Gorgon woes

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 13-Jul-16

New data shows that Australia’s LNG exports were 18.5 per cent higher in June 2016 than in May. The data from EnergyQuest also show that LNG production rose by more than 500,000 tonnes to 3.6 million tonnes. There were a total of 44 shipments in June, although there were no shipments from the Gorgon project due to problems with the first production train. Western Australia accounted for 27 shipments, while 22 LNG consignments departed from Queensland.

CORPORATES
ENERGYQUEST PTY LTD, CHEVRON CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, QUEENSLAND CURTIS LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED

It’s ore or nothing for Fortescue

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Original article by James Thomson
The Australian Financial Review – Page: 28 : 13-Jul-16

Citigroup and UBS believe that Fortescue Metals Group will exceed its forecast for iron ore production of 165 million tonnes in 2015-16. Expectations of bullish full-year output have been heightened by data showing that shipments of iron ore from the Port of Hedland reached a record high in June. Clarke Wilkins of Citigroup estimates that Fortescue’s full-year production may have topped 168 million tonnes, while its port capacity could be up to 180 million tonnes. He suggests that there is the potential for Fortescue to use the cost savings from its debt-reduction program to increase its production to this level.

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