Author: roymorgansocial

Decade of despair: 10 giant surpluses needed to wipe debt

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Original article by David Uren
The Australian – Page: 1/ & 6 : 12-Jul-16

A report produced by Tony Makin and Julian Pearce of Griffith University highlights the challenge confronting the Australian Government in reining in the national debt. They estimate that it would need to achieve surpluses equivalent to 2.2 per cent of GDP each year over the next decade in order to eliminate net debt. This is much higher than the average surpluses achieved by the Coalition government of John Howard and the Labor governments of Bob Hawke and Paul Keating.

CORPORATES
GRIFFITH UNIVERSITY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Chances for asset bargains rare: BHP CFO

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 11-Jul-16

BHP Billiton’s CFO Peter Beaven says the resources giant is still on the lookout for mergers and acquisitions opportunities, but he stresses that such deals are not a priority. BHP is particularly interested in copper and petroleum assets, but Beaven acknowledges that there are limited opportunities to acquire quality assets at an appropriate price at present. Rio Tinto CEO Jean-Sebastian Jacques also recently indicated that the company will not pursue acquisitions that do not create value.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, CHINA MOLYBDENUM COMPANY LIMITED, BARRICK GOLD CORPORATION, ANTOFAGASTA PLC, SOUTH32 LIMITED – ASX S32

Leaders plan reshuffles to their teams

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 11-Jul-16

The Coalition and the Opposition will make changes to their frontbenches before federal parliament resumes in August 2016. Prime Minister Malcolm Turnbull has indicated that there will be no significant changes to the Coalition’s frontbench, although there is speculation that Sussan Ley will lose the health portfolio. Three portfolios in the outer ministry are also vacant after the incumbents lost their seats in the election.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Plea for senators to back trade

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Original article by Annabel Hepworth
The Australian – Page: 17 & 20 : 11-Jul-16

Trade deals such as the Trans-Pacific Partnership are likely to attract greater scrutiny in federal parliament following the 2016 election, with some crossbenchers expressing concern about such agreements. However, BHP Billiton CEO Andrew Mackenzie has urged the Senate to support trade deals, arguing that they have a wide range of benefits. Whitehaven Coal chairman and former National Party leader Mark Vaile has also stressed the importance of free trade agreements.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, WHITEHAVEN COAL LIMITED – ASX WHC, NATIONAL PARTY OF AUSTRALIA, TRANS-PACIFIC PARTNERSHIP, NICK XENOPHON TEAM, ONE NATION PARTY, MALLESONS STEPHEN JAQUES, BUSINESS 20 (B20), CORRS CHAMBERS WESTGARTH, INTERNATIONAL CHAMBER OF COMMERCE, MONASH UNIVERSITY. APEC STUDY CENTRE, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, HOST-PLUS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. PRODUCTIVITY COMMISSION, WORLD TRADE ORGANIZATION, GROUP OF TWENTY (G-20)

PM joins esteemed company in living on electoral knife’s edge

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Original article by Jared Owens
The Australian – Page: 4 : 11-Jul-16

The Coalition seems set to win the 2016 federal election with the slimmest majority on a two-party preferred basis in almost eight decades. It currently boasts 50.13 per cent of the two-party preferred vote, with counting votes not yet complete. Analysis shows that there have been only four elections since 1937 in which a party won the popular vote with a margin of less than 0.5 per cent.

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

One Nation may pull the plug on renewable energy

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Original article by Graham Lloyd
The Australian – Page: 6 : 11-Jul-16

The Coalition and the Australian Labor Party both support the introduction of renewable energy targets. However, a rise in electricity prices in some states may make the introduction of renewable energy targets more difficult, while One Nation opposes such targets and wants renewable energy subsidies to be abolished. Climate Institute CEO John Connor has cautioned against allowing clean energy and climate reforms to be derailed.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ONE NATION PARTY, CLIMATE INSTITUTE (AUSTRALIA) LIMITED, AGL ENERGY LIMITED – ASX AGL, ENERGYAUSTRALIA PTY LTD, AUSTRALIAN ENERGY MARKET COMMISSION

Voters open to jobs message as the good times stall

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Original article by David Uren
The Australian – Page: 1 & 6 : 11-Jul-16

The average real household income in Australia has risen by just 1.2 per cent since mid-2011, according to an analysis by Ben Phillips of the Australian National University’s Centre for Social Research & Method. In contrast, real household incomes in mid-2011 were 17 per cent higher than in 2006. Meanwhile, wages have risen by just nine per cent since March 2012, while there has been a significant increase in costs such as childcare, gas bills and medical expenses over this period.

CORPORATES
AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR SOCIAL RESEARCH AND METHOD, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

ASX tipped to hit 5500 by end of 2016

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Original article by Jessica Sier
The Australian Financial Review – Page: 21 : 11-Jul-16

Hasan Tevfik of Credit Suisse says Australian shares are relatively cheap at present, in comparison to alternative investments such as cash and bonds. Tevfik adds that the prospect of further official interest rate cuts should also prompt investors to switch to equities. Meanwhile, UBS notes that the market’s price-to-book value is now 13 per cent below the long-term average, and about 50 per cent lower in the case of resources stocks. UBS’s David Cassidy expects the market to be trading at around 5,500 points by the end of 2016.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, RESERVE BANK OF AUSTRALIA, CSL LIMITED – ASX CSL, BRAMBLES LIMITED – ASX BXB, AMCOR LIMITED – ASX AMC

PM faces budget fight after win

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 11-Jul-16

Cabinet secretary Arthur Sinodinos says the Coalition has a mandate for its Budget measures after winning the 2016 federal election. He has also downplayed the impact that proposed superannuation reforms had on the election result. The super reforms are likely to be a key issue on the agenda for a party-room meeting on 18 July, with the $A500,000 lifetime cap on contributions likely to come under particular scrutiny. There is also growing acceptance within the Coalition that its 10-year policy to reduce the company tax rate will not pass the Senate in its entirety.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA

Publishers should be wary of online giants, says Seven, Nine

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Original article by Darren Davidson
The Australian – Page: 23 & 25 : 11-Jul-16

Media groups are increasingly seeking to generate traffic to their websites by allowing their content to be republished by companies such as Google and Facebook. However, Facebook recently made changes that give priority to content that is posted by individuals rather than media companies. Seven West Media CEO Tim Worner notes that Facebook and Google are solely content aggregators and do not create their own content, and argues that they should reinvest some of their Australian profits into producing content.

CORPORATES
GOOGLE INCORPORATED, FACEBOOK INCORPORATED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, KLEINER PERKINS CAUFIELD AND BYERS, GUARDIAN MEDIA GROUP PLC