Author: roymorgansocial

Recession in Europe a ‘very scary’ prospect

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Original article by Vesna Poljak, James Chessell, James Thomson
The Australian Financial Review – Page: 15 & 20 : 27-Jun-16

Opinion is divided regarding the likely impact of the UK’s vote to leave the European Union. Financial markets were sold down in the wake of the "Brexit" referendum, and Wilson Asset Management chairman Geoff Wilson warns of the potential for another financial crisis. However, Randal Jenneke of T Rowe Price does not expect Brexit to lead to an economic crisis, arguing that it is a political issue and a political crisis. Meanwhile, Investors Mutual’s Anton Tagliaferro says Brexit will have no impact on the majority of Australian-listed companies.

CORPORATES
WILSON ASSET MANAGEMENT, T ROWE PRICE GROUP INCORPORATED, INVESTORS MUTUAL LIMITED, FTSE 100 INDEX, METAGE CAPITAL GLOBAL VALUE FUND, UNICREDIT SPA, BANCO POPOLARE, BANK OF IRELAND PLC, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, EUROPEAN COMMISSION

Cartel fines up $45.7m as ACCC bares teeth

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Original article by Leo Shanahan
The Australian – Page: 21 : 24-Jun-16

The competition watchdog has become more active in pursuing companies engaged in uncompetitive behaviour. The Australian Competition & Consumer Commission has imposed fines of $A45.7 million in total for breaches of cartel and competition laws since January 2016. This figure is rather surprising, considering that the commission found no evidence of the same offences and issued no fines at all in calendar 2015.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA, EGR PTY LTD, PALRAM AUSTRALIA PTY LTD, AMPELITE, CEMENT AUSTRALIA PTY LTD

Melbourne ‘not oversupplied’

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 33 : 24-Jun-16

Asian Pacific Group CEO Will Deague claims that there is no oversupply of apartments in Melbourne, and in fact not enough apartments are being built in the Victorian capital. Asian Pacific Group’s Melbourne developments include the Whitehorse Towers apartment project in Box Hill and the Collins House project in the CBD. The latter is a joint project with another developer.

CORPORATES
ASIAN PACIFIC GROUP PTY LTD, FAR EAST CONSORTIUM HOLDINGS (AUSTRALIA) PTY LTD, PONTIAC LAND GROUP

$123bil Green splurge

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Original article by Annika Smethurst, Ellen Whinnett
Herald Sun – Page: 1 & 10 : 24-Jun-16

The Australian Greens have announced a range of election policies that will collectively cost some $A123bn. In contrast, the Coalition and the Australian Labor Party have respectively announced $A10.5bn and $A20bn worth of new spending measures during the election campaign. The Greens’ policies include an increase in the pension, which has been costed at $A10bn. The party also proposes the introduction of a tax on soft drinks, a new carbon tax, a tax on banks and a reduction in university fees. Greens leader Richard Di Natale says the policies will be funded via revenue measures and spending cuts.

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

Patrick bid to end dispute on enterprise agreement

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Original article by Ewin Hannan
The Australian Financial Review – Page: 10 : 24-Jun-16

Stevedoring firm Patrick wants the Fair Work Commission to intervene in a dispute over a new enterprise agreement with the Maritime Union of Australia. Patrick will ask the commission to order the union to respond to the company’s proposal, which was made in April 2016. The union criticised the move but it said it has no plans to put pressure on the company through industrial action before the federal election on 2 July.

CORPORATES
PATRICK CORPORATION LIMITED, ASCIANO LIMITED – ASX AIO, MARITIME UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION

Fortescue on track to hit gearing target

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Original article by Paul Garvey
The Australian – Page: 21 : 24-Jun-16

Fortescue Metals Group’s early repayment of debt over the course of 2015-16 will reduce its interest costs by about $US186m a year. The iron ore miner advised on 23 June 2016 that it has repaid an additional $US500m ($A663.4m) worth of debt. It has now repaid a total of $US2.9bn so far in 2015-16, and CFO Steve Pearce says the group could soon have lower gearing than BHP Billiton and Rio Tinto. Fortescue shares closed 8.3 per cent higher at $A3.53.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, METALYTICS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Keating slams unaffordable tax cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 7 : 24-Jun-16

Former prime minister Paul Keating has criticised the Coalition’s proposal to progressively cut the corporate tax rate from 30 per cent to 25 per cent. He described the tax cut as irresponsible and unaffordable. Keating warned that it would damage Australia’s fiscal position because of lower tax revenue. According to Paul Abbey, a partner at PricewaterhouseCoopers, low corporate taxes are necessary to attract foreign investment, although it can take decades for the benefits of such a policy to be noticeable.

CORPORATES
PRICEWATERHOUSECOOPERS, BUSINESS COUNCIL OF AUSTRALIA, VICTORIA UNIVERSITY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT, LOWY INSTITUTE FOR INTERNATIONAL POLICY, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF NEW SOUTH WALES

RBA warning on Brexit

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Original article by Phillip Coorey, James Chessell
The Australian Financial Review – Page: 1 & 4 : 24-Jun-16

Prime Minister Malcolm Turnbull says there will be a global economic shock if the UK votes to leave the European Union, adding that the Coalition is best-placed to manage the Australian economy during such turmoil. Meanwhile, both major political parties have been briefed by the heads of the Reserve Bank, the Australian Prudential Regulation Authority and the Treasury on the likely impact of a "Brexit" on the local financial market. The outcome of the referendum is tipped to be very close.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, EUROPEAN COMMISSION, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

It’s a big short-term buying opportunity

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 24-Jun-16

Charles de Bolssezon of Societe Generale forecasts that the FTSE 100 will rally in coming months if the UK votes to remain in the European Union. However, the FTSE is tipped to shed about 15 per cent if Britons vote to leave the EU, while the S&P 500 will fall by 10 per cent. Richard Coppleson of Bell Potter says Australia’s benchmark S&P/ASX 200 would also fall sharply in the event of a "Brexit", but he adds that this would create buying opportunities for investors in the short-term.

CORPORATES
SOCIETE GENERALE SA, FTSE 100 INDEX, STANDARD AND POOR’S 500 INDEX, BELL POTTER SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, EURO STOXX 50 INDEX, FTSE 250 INDEX, NIKKEI 225 INDEX, CITIGROUP INCORPORATED, BANK OF ENGLAND, UNITED STATES. FEDERAL RESERVE BOARD

Turnbull vows new laws to protect CFA volunteers

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Original article by Matthew Knott, Richard Willingham, Nicole Hasham
The Age – Page: 6 : 24-Jun-16

Prime Minister Malcolm Turnbull visited the seat of Corangamite in Victoria on 23 June 2016, where he said that amending the Fair Work Act to protect volunteer firefighters will be a priority for the Coalition if it is re-elected. Turnbull praised the Country Fire Authority, which is the subject of a power grab by the United Firefighters Union. Meanwhile, Opposition Leader Bill Shorten reiterated that the CFA dispute is a state issue, and suggested that Turnbull has only intervened due to the federal election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, VICTORIA. COUNTRY FIRE AUTHORITY, UNITED FIREFIGHTERS’ UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY