Author: roymorgansocial

ALS in play after private equity lobs $2bn approach

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Original article by Paul Garvey. Bridget Carter
The Australian – Page: 19 & 22 : 2-Jun-16

Shares in Australian-listed ALS went into a trading halt on 1 June 2016, ahead of an announcement about a potential buyout. Media reports have suggested that private equity firms Bain Capital and Advent International have approached the mining services group regarding a takeover bid. ALS shares last traded at $A4.05, having peaked at more than $A10 in 2013. The laboratory testing group’s net loss widened to $A240.7 million in the year to 31 March 2016.

CORPORATES
ALS LIMITED – ASX ALQ. BAIN CAPITAL LLC. ADVENT INTERNATIONAL CORPORATION. BANK OF AMERICA AUSTRALIA LIMITED. MERRILL LYNCH (AUSTRALIA) PTY LTD. JP MORGAN AUSTRALIA LIMITED. THE GOLDMAN SACHS GROUP INCORPORATED. SGS LIMITED. ISATEC LIMITED. BUREAU VERITAS. CRESCENT CAPITAL PARTNERS LIMITED. CARDNO LIMITED – ASX CDD. BRADKEN LIMITED – ASX BKN. MOLY-COP. ARRIUM LIMITED – ASX ARI. TPG CAPITAL LP. THE BLACKSTONE GROUP LP. RHONE CAPITAL LLC. BOART LONGYEAR LIMITED – ASX BLY. CENTERBRIDGE PARTNERS LP

Coles-union deal paid below legal safety net

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Original article by Elizabeth Colman
The Australian – Page: 2 : 1-Jun-16

The Fair Work Commission has ruled against an enterprise bargaining agreement between grocery giant Coles and the Shop, Distributive & Allied Employees’ Association. The FWC found that the agreement does not comply with the Fair Work Act’s requirement that employees must be better off overall, as it provides for an hourly rate of pay that is above the award rate but includes lower penalty rates. The FWC had approved the deal in 2015, but a part-time employee challenged the validity of the agreement.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, AUSTRALIA. FAIR WORK COMMISSION

ANZ-Roy Morgan Australian Consumer Confidence – Consumers cringe as confidence drops to 113.2

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-May-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 2.2 per cent to 113.2 in the week ended 29 May 2016, partially reversing the 3.6 per cent increase over the previous four weeks. Confidence remains just above its long-run average (+0.4 per cent). The fall last week was largely driven by concerns about the economic outlook. Consumers’ views towards their current finances rose 0.7 per cent, but consumers’ views towards their future finances fell 4.7 per cent.

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

Fears wage rise will hit hiring

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Original article by David Crowe
The Australian – Page: 2 : 1-Jun-16

Australian Chamber of Commerce & Industry CEO James Pearson says the $A15.80 per week increase in the minimum wage will make small businesses in particular less likely to hire additional staff. The minimum wage will increase by 2.4 per cent to $A672.70 a week, but Pearson notes that wages in the private sector rose by just 1.9 per cent in the March 2016 quarter and the annual inflation rate is 1.3 per cent. ACTU secretary Dave Oliver says the increase in the minimum wage is good but should have been higher.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, ACTU, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN BUREAU OF STATISTICS

Not so full of beans: instant coffee sales down

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-May-16

A Roy Morgan Single Source survey has found that the proportion of Australian grocery-buyers aged 14+ who bought instant coffee (not decaf) in an average four-week period slipped from 59.1 per cent to 49.4 per cent between April 2011 and March 2016. Over the same period, the proportion buying fresh coffee in any given four weeks rose from 28.2 per cent to 30.2 per cent. Nescafe remains the most popular brand of instant coffee, with its different varieties being purchased by 49.7 per cent of all instant-coffee buyers in an average four weeks in the year to March 2016, although this compares with 57 per cent in the year to March 2012.

CORPORATES
ROY MORGAN RESEARCH LIMITED, NESCAFE, MOCCONA, INTERNATIONAL ROAST

Chinese in race for 20pc of Virgin

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Original article by Andrew White
The Australian – Page: 19 & 28 : 1-Jun-16

Chinese airline operator HNA Group will pay $A159m for a 13 per cent stake in Virgin Australia Holdings. The placement was priced at $A0.30 per share, and Virgin CEO John Borghetti says the Chinese group is likely to lift its stake to 19.9 per cent. The stakes of Virgin’s major shareholders – Air New Zealand, Singapore Airlines, Etihad and Virgin Group – will be diluted as a result of the placement. HNA’s businesses include Hainan Airlines and Hong Kong Airlines.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, HNA GROUP, AIR NEW ZEALAND LIMITED – ASX AIZ, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, HAINAN AIRLINES COMPANY LIMITED, HONG KONG AIRLINES LIMITED, WEST ASIA AIRLINES LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, MACQUARIE WEALTH MANAGEMENT

Company levy ‘just 4.3pc of total take’

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Original article by Annabel Hepworth
The Australian – Page: 6 : 1-Jun-16

Analysis by Deloitte Access Economics suggests that the Australian Government will collect some $A1.11trn in corporate tax revenue between 2016-17 and 2026-27. It is estimated that the Government’s proposed company tax cuts will account for no more than 4.3 per cent of this revenue, and just 0.8 per cent of the Government’s overall revenue during this period. Minerals Council of Australia CEO Brendan Pearson says the Deloitte figures demonstrate that the proposed tax cuts are justified.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MMG LIMITED – ASX MMG

The lithium boom will end, like all the others

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Original article by Paul Garvey
The Australian – Page: 28 : 1-Jun-16

Expectations of strong growth in demand for lithium-ion batteries has prompted a rally in the price of lithium, and in turn bolstered the share prices of lithium producers. However, there are some similarities between the lithium boom and the iron ore boom. Macquarie Group believes that the lithium boom will have run its course within about 18 months. It has "buy" recommendations on just two lithium producers, Orocobre and Neometals.

CORPORATES
OROCOBRE LIMITED – ASX ORE, NEOMETALS LIMITED – ASX NMT, MACQUARIE GROUP LIMITED – ASX MQG, GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED – ASX GMM, PILBARA MINERALS LIMITED – ASX PLS, ALTURA MINING LIMITED – ASX AJM, LATIN RESOURCES LIMITED – ASX LRS, TALISON LITHIUM LIMITED, SQM, ALBERMARLE CORPORATION, FMC LITHIUM, CITIGROUP PTY LTD, ATLAS IRON LIMITED – ASX AGO, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, VALE SA, FORTESCUE METALS GROUP LIMITED – ASX FMG

ASX posts best rise for May since 2005

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 1-Jun-16

The Australian sharemarket lost ground on 31 May 2016, with the S&P/ASX 200 shedding 0.5 per cent to close at 5,378.6. The Commonwealth Bank was one per cent lower at $A77.43 and BHP Billiton was down 0.8 per cent at $A19.08. However, Select Harvests advanced 6.7 per cent to end the session at $A7.15 and Incitec Pivot was up 2.1 per cent at $A3.45. The market gained 2.4 per cent in May.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, SELECT HARVESTS LIMITED – ASX SHV, INCITEC PIVOT LIMITED – ASX IPL, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, TELSTRA CORPORATION LIMITED – ASX TLS, FLEXIGROUP LIMITED – ASX FXL, ARISTOCRAT LEISURE LIMITED – ASX ALL, TRANSURBAN GROUP LIMITED – ASX TCL, MORGANS FINANCIAL LIMITED, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Twiggy warns about supply chain slavery

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Original article by Glenda Korporaal
The Australian – Page: 21 : 1-Jun-16

Mining magnate Andrew Forrest says slavery and forced labour is a global problems, and he estimates that the number of slaves worldwide is about 46 million. The Global Slavery Index, which is funded by Forrest’s Walk Free charity, estimates that India and China have the highest number of people living in slavery. Forrest says slavery is also an issue in Australia, and he has urged other companies to follow Fortescue Metals Group’s example and take measures to ensure that their supplier are not using slave labour.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, GLOBAL SLAVERY INDEX, WALK FREE FOUNDATION, GALLUP INCORPORATED