Author: roymorgansocial

Is the yield play back in vogue?

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 8-Jun-16

The low interest rate environment has prompted strong support for high-yielding Australian stocks. However. investors recently began selling yield stocks amid expectations of several interest rate rises in the US during 2016. Citi Global Markets’ Karen Jorritsma notes that yield stocks will be back in favour following the release of the latest US jobs data, which will dampen expectations that the Federal Reserve will increase the cash rate.

CORPORATES
CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, SCENTRE GROUP – ASX SCG, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, APA GROUP – ASX APA, KATANA ASSET MANAGEMENT LIMITED, DEXUS PROPERTY GROUP – ASX DXS, MIRVAC GROUP – ASX MGR

Australian unemployment is up 0.3% to 10.7% in May; Under-employment down 0.3% to 7.4%

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-Jun-16

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate rose by 0.3 per cent to 10.7 per cent in May 2016. The number of people in the workforce has fallen by 27,000 to 12,783,000 (although up 293,000 since May 2015), and 11,414,000 Australians are employed (up 213,000 in the last 12 months). Meanwhile, the number of people who are under-employed has fallen by 74,000 in the last 12 months to 947,000 (7.4 per cent of the workforce). The official unemployment rate was 5.7 per cent in April 2016. Roy Morgan Research executive chairman Gary Morgan says that with the federal election a month away, both sides of politics continue to base their economic modelling on the wrong ABS unemployment data and because of this they will not advocate the correct policy reforms that need to be undertaken to "free-up" the Australian labour market. Stimulating real growth in the economy is the most effective way to create jobs for unemployed and under-employed Australians.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Shoppies wedge Shorten on penalties

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Original article by Elizabeth Colman, Jared Owens
The Australian – Page: 8 : 3-Jun-16

The Shop, Distributive & Allied Employees’ Association has attracted criticism after its enterprise agreement with Coles was struck down by the Fair Work Commission. Council of Small Business of Australia CEO Peter Strong has accused the union of hypocrisy for using its website to continue campaigning against lower penalty rates. The enterprise agreement excluded penalty rates for some workers. A spokesman for Opposition Leader Bill Shorten says the FWC should not have approved the agreement in the first place.

CORPORATES
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, 7-ELEVEN STORES PTY LTD, ACTU, AUSTRALIA. PRODUCTIVITY COMMISSION, NATIONAL TERTIARY EDUCATION INDUSTRY UNION, AUSTRALIA. DEPT OF EMPLOYMENT

CFA fury as union wins demands

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Original article by Rick Wallace
The Australian – Page: 4 : 3-Jun-16

Victorian Premier Daniel Andrews has described the Fair Work Commission’s recommendations on unionisation of the Country Fire Authority as "fair and balanced". However, Opposition Leader Matthew Guy says the recommendations are biased, adding that Andrews should support the state’s volunteer firefighters in their stance against the United Firefighters’ Union’s enterprise bargaining agreement. It is estimated that only 1,000 of the CFA’s 60,000-plus members are also members of the UFU.

CORPORATES
VICTORIA. COUNTRY FIRE AUTHORITY, UNITED FIREFIGHTERS’ UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, VICTORIA. DEPT OF PREMIER AND CABINET, LIBERAL PARTY OF VICTORIA, AUSTRALIA. DEPT OF EMPLOYMENT, VOLUNTEER FIRE BRIGADES VICTORIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN MANUFACTURING WORKERS’ UNION, MELBOURNE METROPOLITAN FIRE BRIGADE

Greens plan to break up big four banks

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Original article by Joanna Mather, James Thomson
The Australian Financial Review – Page: 7 : 3-Jun-16

Cross-selling of financial products by Australian banks may come under scrutiny after the 2016 federal election. The Australian Greens will push for the major banks to divest their wealth divisions, which provide products and services such as superannuation, financial advice and insurance. Vertical integration in the banking sector would also be examined by a royal commission into banks if the Australian Labor Party wins the election. The Australian Bankers’ Association has urged Labor to rule out supporting the Greens’ policy on vertical integration.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, MORNINGSTAR PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

NAB set to face claims of rate-rigging

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Original article by Sarah Thompson, Jemima Whyte, Anthony Macdonald
The Australian Financial Review – Page: 17 & 22 : 3-Jun-16

The Australian Securities & Investments Commission has a narrow time-frame to decide whether to pursue legal action against National Australia Bank for manipulating the bank bill swap rate. The alleged conduct occurred on 6 June 2010, which means ASIC must commence legal proceedings within days under the statute of limitations. Westpac and ANZ Bank have already been the subject of ASIC action over such conduct, while several investment banks have agreed to enforceable undertakings.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

Dobbed in, found guilty

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Original article by Misa Han
The Australian Financial Review – Page: 1 & 2 : 3-Jun-16

Former investment banker Oliver Curtis could be jailed for up to five years after being convicted of conspiracy to commit insider trading. The Australian Securities & Investments Commission had alleged that he profited by using market-sensitive information to trade contracts for difference in 2007 and 2008. Curtis had used inside information supplied by co-conspirator John Hartman, an equities dealer at Orion Asset Management. Hartman has served a 15-month jail term, and received a reduced sentence for providing evidence against Curtis.

CORPORATES
ORION ASSET MANAGEMENT (AUST) PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, LYNAS CORPORATION LIMITED – ASX LYC, CLIFFORD CHANCE

Super changes to hit 1.3m

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Original article by Sally Rose, Phillip Coorey, Sally Patten
The Australian Financial Review – Page: 1 & 4 : 3-Jun-16

The Association of Superannuation Funds of Australia has estimated that up to 1.26 million individuals will be affected by the superannuation tax reforms in the Federal Government’s May 2016 Budget. This equates to about nine per cent of super fund members, compared with the Government’s forecast of about four per cent. There is growing dissent within the Liberal Party regarding the proposed changes, but Prime Minister Malcolm Turnbull and Treasurer Scott Morrison have stressed that the reforms will be fully implemented if the Coalition wins the federal election.

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN LABOR PARTY, ELSTON PARTNERS PTY LTD

No relief in sight for iron ore bulls

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 28 : 3-Jun-16

Morgan Stanley notes that global iron ore production will rise by 41 million tonnes in the second half of 2016, followed by an additional 78 million tonnes in 2017. The looming increase in global supply does not bode well for the price of the steel input, which has fallen by more than 30 per cent since late April 2016. BHP Billiton, Rio Tinto and Vale are among the iron ore producers that will increase their output in coming years, as new projects or mine expansions reach full production capacity.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, ROY HILL IRON ORE PTY LTD, SAMARCO MINERACAO SA

Coca-Cola Amatil tops 10 stocks to buy if June turns ugly

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 3-Jun-16

The Australian sharemarket has performed well since mid-April 2016, but some analysts believe that this may not be sustained. Tim Baker of Deutsche Bank has identified a number of defensive stocks that investors should consider if sentiment becomes bearish in June. They are Coca-Cola Amatil, Estia Health, Mirvac Group, DUET Group, AGL Energy, Suncorp Group, Medibank Private, Shopping Centres Australasia Property Group, Vicinity Centres and Healthscope.

CORPORATES
DEUTSCHE BANK AG, COCA-COLA AMATIL LIMITED – ASX CCL, ESTIA HEALTH LIMITED – ASX EHE, MIRVAC GROUP – ASX MGR, DUET GROUP – ASX DUE, AGL ENERGY LIMITED – ASX AGL, SUNCORP GROUP LIMITED – ASX SUN, MEDIBANK PRIVATE LIMITED – ASX MPL, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, VICINITY CENTRES – ASX VCX, HEALTHSCOPE LIMITED – ASX HSO