Author: roymorgansocial

Turnbull’s biggest economic landmines

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 9-May-16

A number of factors may affect the election prospects of Prime Minister Malcolm Turnbull on 2 July 2016. The Reserve Bank holds its next monetary policy meeting on 7 June. While rating agencies are unlikely to downgrade Australia’s credit rating during the election campaign, Turnbull will be concerned about the possibility of Australia being placed on credit watch in the wake of the Budget. Economic data to be released during the 56-day campaign include the national accounts for the March quarter and jobs data for both May and June.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Fairfax journalists face investigation over strike

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Original article by Nick Toscano
The Age – Page: 24 : 5-May-16

The Fair Work Ombudsman has ordered Fairfax Media to provide it with the personal details of about 600 journalists who staged unprotected industrial action in mid-March 2016. The strike was prompted by Fairfax’s latest proposed round of redundancies. The Media, Entertainment & Arts Alliance is also subject to the compulsory order, and could a fine of up to $A54,000. Journalists could each be liable for fines of up to $A10,800 for unlawful industrial action.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIA. FAIR WORK COMMISSION

Tax crackdown will be far reaching

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Original article by Joanna Mather
The Australian Financial Review – Page: 17 : 5-May-16

The Corporate Tax Association’s Michelle de Niese says the diverted profits tax outlined in the Australian Government’s May 2016 Budget may prove to be broader in scope than a similar tax in the UK. Companies found to have engaged in profit-shifting will face a tax rate of 40 per cent on such profits, compared with the corporate tax rate of 30 per cent. Mark Konza of the Australian Taxation Office adds that the new tax may affect more taxpayers than the multinational anti-avoidance law, which was introduced in 2015.

CORPORATES
CORPORATE TAX ASSOCIATION, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RSM PTY LTD, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, NETFLIX INCORPORATED

Keeping it clean: Australia’s air-freshener buyers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-May-16

A Roy Morgan Single Source survey has found that one in five Australians aged 14+ (or 3.8 million people) buy air fresheners or deodorisers in an average four weeks. The survey, which was carried out in the year to December 2015, also shows that 23.9 per cent of Australians aged 65+ purchase air fresheners or deodorisers in an average four weeks, compared with just 12.3 per cent of under-25s and 16.2 per cent of 25-34 year-olds. Meanwhile, some 20.6 per cent of dog owners, 20.8 per cent of cat owners and 23 per cent of people who own at least one dog and one cat buy air fresheners in any given four weeks.

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ROY MORGAN RESEARCH LIMITED

Rates cut, fiscal plan keep real estate ticking

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Original article by Michael Bleby
The Australian Financial Review – Page: 6 : 5-May-16

Angus Raine, the executive chairman of Raine & Horne, says the Reserve Bank’s move to reduce the cash rate to 1.75 per cent should attract first-time buyers back to the property market. Most experts do not expect the rate cut and the Australian Government’s May 2016 Budget to have much impact on activity in the residential market, but some suggest that the new rules on superannuation fund balance transfers will prompt increased demand for lower-priced commercial properties.

CORPORATES
RAINE AND HORNE PTY LTD, RESERVE BANK OF AUSTRALIA, CBRE PTY LTD, CENTURY 21 REAL ESTATE, RAY WHITE REAL ESTATE, SECRET AGENT PROPERTY SERVICES

Woolies hit by ratings downgrade

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Standard & Poor’s has reduced the long-term credit rating of Woolworths from "BBB+" to " BBB". S&P had previously downgraded the Australian retail giant’s credit rating in August 2015. Rival ratings agency Moody’s will also review its "Baa2" rating on the stock, having downgraded it from "Baa1" in March 2016. The bearish sentiment follows Woolworths’ disappointing financial results for the March quarter. Analysts in turn have reduced their earnings forecasts for 2016 and 2017.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, BIG W DISCOUNT STORES, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

Santos puts cost cutting before more asset sales

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Original article by Simon Evans, Angela Macdonald-Smith
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Shares in Santos closed 8.7 per cent lower at $A4.20 on 4 May 2016, after the oil and gas producer’s annual meeting. Santos has shed 825 employees over the last 18 months, and CEO Kevin Gallagher has confirmed that more redundancies are on the agenda as part of the group’s cost-cutting strategy. He has also indicated that Santos may eventually divest some assets, but stressed that reducing costs and stabilising the company is the immediate priority.

CORPORATES
SANTOS LIMITED – ASX STO, HONY CAPITAL, ENN HOLDINGS, GLADSTONE LNG PTY LTD, TOTAL SA, RBC CAPITAL MARKETS

BHP dives on fears over Brazil lawsuit

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 5-May-16

A Brazilian prosecutor intends to launch a 155 billion Brazilian Real ($US43bn) damages claim against BHP Billiton and Vale over the tailings dam disaster at the Samarco iron ore project. BHP had previously advised that the Samarco joint venture partners’ total liability was expected to be 9.2 billion Brazilian Real ($US2.58bn), after reaching a preliminary agreement with the Brazilian Government. BHP shares closed 9.4 per cent lower at $A18.79 on 4 May 2016, amid a broader sell-down of resources stocks.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, NEWCREST MINING LIMITED – ASX NCM, WHITEHAVEN COAL LIMITED – ASX WHC, S2 RESOURCES LIMITED – ASX S2R

Licence fee cut short of adequate: networks

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Original article by Jake Mitchell
The Australian – Page: 28 : 5-May-16

Macquarie Securities estimates that Nine Entertainment Company’s EBITDA will increase by $A10.9m due to the reduction in broadcasting licence fees in the Australian Government’s May 2016 Budget. The EBITDA of Seven West Media and Ten Network will rise by $A12.1m and $A7m respectively. Seven West CEO Tim Worner says the 25 per cent reduction in the annual licence fee is insufficient for commercial TV networks to remain competitive.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, MACQUARIE SECURITIES PTY LTD, NIKKO ASSET MANAGEMENT GROUP, STANDARD AND POOR’S ASX 200 INDEX, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL

Optus hits own goal with EPL pricing

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Original article by Michael Bodey
The Australian – Page: 26 : 5-May-16

The majority of Optus customers will pay $A15 per month to access the telco’s coverage of English Premier League matches. Optus had been widely tipped to charge just $A10 per month. However, customers on Optus’s most expensive mobile and broadband plans will not be charged extra for access to EPL matches. Optus also intends to launch a mini set-top box that will allow customers to stream EPL matches to a TV rather than viewing them on a PC or mobile device.

CORPORATES
SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE, FETCHTV PTY LTD, NETFLIX INCORPORATED, PRESTO ENTERTAINMENT PTY LTD, FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS