Author: roymorgansocial

Party message missed the mark, says Hastie

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Original article by
The Australian – Page: 5 : 7-Jul-16

Liberal Party MP Andrew Hastie has retained the seat of Canning with a margin of 6.2 per cent, after a swing against him of 5.1 per cent in the federal election. Hastie is the latest Coalition MP to criticise the Liberal Party’s election campaign, noting that policies such as company tax cuts and the innovation agenda had little relevance for many Australians. Hastie also says Coalition backbenchers must be consulted regarding any negotiations with crossbenchers.

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LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Legal woes mount for CFMEU

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Original article by Ben Butler
The Australian – Page: 2 : 5-Jul-16

The liquidator of two failed building contractors has alleged that officials and employees of the militant Construction, Forestry, Mining & Energy Union threatened to commit unlawful acts. It has also been alleged that they attempted to induce subcontractors at a Melbourne construction site to break their contracts. The Federal Court recently fined the CFMEU some $A180,000 for its role in an illegal blockade of a construction site.

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CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF VICTORIA, BORAL LIMITED – ASX BLD, GROCON PTY LTD, PENTRIDGE VILLAGE PTY LTD, WEST HOMES AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, CAPITAL FINANCE AUSTRALIA LIMITED, IMPROVED CONCRETE PUMPING SERVICES, AUSTRALIAN LABOR PARTY

Kidman sale in doubt with election results

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Original article by Matthew Cranston
The Australian Financial Review – Page: 30 : 5-Jul-16

The post-election reconfiguration of the Australian parliament could affect the sale of S. Kidman & Company. Dakang Australia Holdings is expected to try again to buy Kidman, after its acquisition proposal was rejected by Treasurer Scott Morrison. Senators Adam Bandt, Pauline Hanson, Nick Xenophon and Bob Katter are likely to oppose the sale of Kidman to foreigners.

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S KIDMAN AND COMPANY PTY LTD, DAKANG AUSTRALIA HOLDINGS PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, AUSTRALIAN GREENS, DOMACOM LIMITED

Rio Tinto sells shuttered coal mine for $1

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 5-Jul-16

Australian-listed TerraCom will pay just $A1 for Rio Tinto’s Blair Athol thermal coal mine in Queensland. The deal was Rio Tinto’s third attempt to divest the mine, which was mothballed in 2012. However, Rio Tinto will contribute to the cost of rehabilitating some 50 hectares of land that has already been mined at the site. TerraCom aims to resume production at the mine by the end of 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TERRACOM LIMITED – ASX TER, LINC ENERGY LIMITED, BLAIR ATHOL COAL, J-POWER AUSTRALIA PTY LTD, JAPAN COAL DEVELOPMENT COMPANY, STANMORE COAL LIMITED – ASX SMR, VALE SA

BHP nod to $US200m copper expansion drive

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Original article by James Thomson
The Australian Financial Review – Page: 1 & 11 : 5-Jul-16

Resources giant BHP Billiton will increase the capacity of the Los Colorados concentrator at its Escondida copper mine in Chile. Danny Malchuk, the head of BHP’s Minerals Americas division, believes that the project will cost less than the $US200m that has been budgeted. Expansion of the concentrator will allow the Escondida mine to increase annual production by between 150,000 and 200,000 tonnes. The project is slated for completion by mid-2017.

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BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

Hung parliament lifts risk of credit downgrade

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Original article by David Uren
The Australian – Page: 1 & 4 : 5-Jul-16

Standard & Poor’s is tipped to review Australia’s "AAA" credit rating in the wake of the federal election. S&P has indicated that the nation’s credit rating may be downgraded unless the next government can implement measures to reduce the Budget deficit. Fitch Ratings has also warned of the potential for a downgrade if a hung parliament results in policies that further increase the deficit. However, Moody’s notes that Australia’s government debt remains much lower than the majority of developed economies.

CORPORATES
STANDARD AND POOR’S CORPORATION, FITCH RATINGS LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, RESERVE BANK OF AUSTRALIA

Hung parliament syndrome: Lessons from Gillard in 2010

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 5-Jul-16

The potential for a hung parliament following the 2016 federal election is likely to weigh on investor sentiment in the near-term, although equities quickly recovered after a sell-off in the wake of the 2010 election. The prospect of another obstructive Senate in particular is a concern for investors, as it is likely to affect the timing of a return to a Budget surplus. However, financial markets are proving to be resilient to risk factors, as the rebound following the UK’s "Brexit" referendum demonstrates.

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WATERMARK FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S CORPORATION

Shorten calls for Turnbull to fall on sword

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 5-Jul-16

Anthony Albanese has ruled out a leadership challenge if the Australian Labor Party loses the 2016 federal election. Meanwhile, Opposition Leader Bill Shorten says Prime Minister Malcolm Turnbull should accept responsibility for the "farcical" situation in the Senate and resign, arguing that his voting reforms have resulted in greater instability in the upper house. Turnbull will also come under pressure from the National Party to be given an additional cabinet portfolio if the Coalition is re-elected.

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AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, ONE NATION PARTY, LIBERAL PARTY OF VICTORIA

Turnbull faces Liberal revolt

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Original article by Dennis Shanahan, David Crowe
The Australian – Page: 1 & 4 : 4-Jul-16

Prime Minister Malcolm Turnbull has held preliminary talks with key crossbenchers, who could determine the outcome of the federal election. However, Coalition ministers and backbenchers will insist on being consulted by Turnbull regarding any deals with the crossbenchers. Meanwhile, Turnbull has attracted criticism over the Coalition’s election campaign, but senior Coalition MPs have expressed support for him.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN ELECTORAL COMMISSION, NICK XENOPHON TEAM, SKY NEWS, RADIO NATIONAL

Election logjam won’t force RBA rate cut

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 5-Jul-16

Paul Dales of Capital Economics expects the Reserve Bank of Australia to leave the cash rate unchanged on 5 July 2016. The general consensus of economists, including Dales, is that the central bank will reduce official interest rates to 1.5 per cent in August, due to weak underlying inflation. The inflation data for the June 2016 quarter is likely to be a bigger influence on monetary policy than the political uncertainty in the wake of the federal election.

CORPORATES
CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FITCH RATINGS LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED