Author: roymorgansocial

Forget May, June’s the time to sell and go away

roymorgansocial Leave a comment

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

The Australian sharemarket has gained nearly 10 per cent since 11 April 2016, which equates to more than 450 points. However, fund managers do not expect the recent rally to be sustained in June, citing factors such as the prospect of an interest rate rise in the US in coming months. Tax loss selling and portfolio rebalancing in the lead-up to the end of the financial year will also influence the near-term direction of the market.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, PEAK ASSET MANAGEMENT PTY LTD, OPHIR ASSET MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED, CSL LIMITED – ASX CSL, NEWCREST MINING LIMITED – ASX NCM, UNITED STATES. FEDERAL RESERVE BOARD, LIQUEFIED NATURAL GAS LIMITED – ASX LNG, CAPITOL HEALTH LIMITED – ASX CAJ, 1-PAGE LIMITED – ASX 1PG, CARDNO LAWSON TRELOAR PTY LTD, CUDECO LIMITED – ASX CDU

Election now too close to call: ALP 51% cf. L-NP 49%. Minor Parties ‘won’ last night’s Leaders’ debate.

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 30-May-16

A multi-mode Morgan Poll on Federal voting intention has found that support for Australia’s ruling Liberal-National Coalition on a two-party preferred basis has risen by 1.5 per cent to 49 per cent. The poll, which was carried out on the weekends of 21-22 and 28-29 May 2016, also shows that the Coalition’s primary vote has risen by one to 37.5 per cent, while the Roy Morgan Government Confidence Rating has fallen by 2.5 points to 102. Roy Morgan Research executive chairman Gary Morgan notes that support for the minor parties is at a massive 30 per cent (up 8.9 per cent from the 2013 Federal Election), and support for the minor parties will only rise after the uninspiring Leader’s debate. Prime Minister Malcolm Turnbull did not explain how the unemployed and under-employed (18.1 per cent, or 2.322 million) will get jobs and Opposition Leader Bill Shorten gave no indication on how a Labor Government would create more private sector jobs by massive increases in public sector spending. However, Turnbull and Shorten still have time to present believable policies which tackle Australia’s booming "cash economy" and reduce real unemployment and under-employment.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, PALMER UNITED PARTY, NICK XENOPHON TEAM, FAMILY FIRST PARTY AUSTRALIA LIMITED, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Aldi closes in on giants as profitability grows

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-May-16

UBS has forecast that Aldi will record annual growth in grocery sales in Australia of 15 per cent over the next three years. This is 4-5 times higher than the sector’s growth rate overall. Ben Gilbert of UBS forecasts that Aldi’s share of the national grocery market will exceed 10 per cent by 2019-20, compared with about seven per cent at present. He believes that the discount grocery chain will soon reach a "tipping point" in terms of its share of consumers’ main grocery shop.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, LIDL GMBH & CO KG

New ACCI head urges big workplace fix

roymorgansocial Leave a comment

Original article by Ewin Hannan
The Australian Financial Review – Page: 7 : 31-May-16

Australian Chamber of Commerce & Industry CEO James Pearson has called for action on the issue of industrial relations reform. He says ACCI surveys show that over-regulation and the compliance burden are key concerns for its members, and he has called for both sides of politics to put workplace reform on their policy agenda. Pearson also notes that debate on workplace reform is constantly stifled by unions’ claims that it will result in a return to WorkChoices-style workplace laws.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA), ACTU, SHELL COMPANY OF AUSTRALIA LIMITED, CHEVRON AUSTRALIA PTY LTD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, WESTERN AUSTRALIA. DEPT OF INDUSTRY AND RESOURCES, AUSTRALIA. FAIR WORK COMMISSION

Court fines CFMEU over airport blockade

roymorgansocial Leave a comment

Original article by Andrew Burrell
The Australian – Page: 5 : 31-May-16

Six senior officials of the militant Construction, Forestry, Mining & Energy Union have received fines ranging from $A1,000 to $A2,750 in the Federal Court of Australia. The union itself has been fined $A12,500 for breaching industrial laws by blockading a project to upgrade Perth Airport in 2013. Fair Work Building & Construction director Nigel Hadgkiss notes that the CFMEU and its officials have now been fined three times in May 2016 for breaches of the Fair Work Act.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, FAIR WORK BUILDING AND CONSTRUCTION, PERTH AIRPORT

Sydney home prices lead way with 3.4pc surge

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 9 : 31-May-16

Data from CoreLogic shows that the capital city-average house price index rose by 1.6 per cent in May 2016, compared with 1.7 per cent in April. The data also shows that house prices in Sydney increased by 3.4 per cent in May, although SQM Research’s Louis Christopher believes that prices are growing at a slower pace. Meanwhile, Housing Industry Association data indicates that there was an 8.1 per cent decline in sales of new homes in New South Wales during April.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, SQM RESEARCH PTY LTD, HOUSING INDUSTRY ASSOCIATION LIMITED

Labor’s decade of 49pc tax

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 31-May-16

The Australian Labor Party will retain the Budget deficit levy on high-income earners for at least 10 years if it wins the federal election. The levy was intended to be phased out in mid-2017, and Labor has previously flagged keeping it in place beyond this date for an unspecified period. Labor intends to retain the levy in order to finance its healthcare funding. The Australian Greens also support retaining the levy and would most likely back legislation to extend it beyond 2017.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Morrison worried about growth

roymorgansocial Leave a comment

Original article by Jacob Greber, Mark Mulligan
The Australian Financial Review – Page: 1 & 4 : 31-May-16

Economists forecast that the Australian economy expanded by just 0.6 per cent in the March 2016 quarter. Data to be released on 31 May is tipped to show GDP growth of 2.7 per cent year-on-year during the quarter, compared with three per cent previously. Treasurer Scott Morrison has used the slowing economy to defend the Federal Government’s push to reduce the corporate tax rate. He has also criticised Opposition Leader Bill Shorten for opposing tax cuts that would stimulate economic activity.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA

M&A won’t solve BHP’s growth questions

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 29 : 31-May-16

Citi analyst Clarke Wilkins notes that BHP Billiton has performed poorly in terms of mergers and acquisitions in recent years, and its high level of debt is likely to rule out acquisitions in the next several years. Wilkins adds that there is a dearth of suitable acquisitions at present, particularly in the copper and oil sectors, and he suggests that the resources giant could instead consider asset sales. He identifies BHP’s petroleum division as a potential candidate for asset sales.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CITIGROUP PTY LTD, RIO TINTO LIMITED – ASX RIO, POTASH CORPORATION OF SASKATCHEWAN INCORPORATED, GLENCORE PLC, SOUTH32 LIMITED – ASX S32

Galaxy Resources, General Mining in $700m merger

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 16 : 31-May-16

Lithium miners Galaxy Resources and General Mining Corporation have confirmed a merger deal. Shares in both groups resumed trading on 30 May 2016 after Galaxy unveiled a proposal to offer 1.65 of its shares for each share in General Mining. The merged entity’s assets will include the joint venture Mt Cattlin project in Western Australia. There is expected to be strong growth in demand for lithium in coming years.

CORPORATES
GALAXY RESOURCES LIMITED – ASX GXY, GENERAL MINING CORPORATION LIMITED – ASX GMM, GLOBAL LITHIUM LLC