Author: roymorgansocial

Business Confidence jumps again in April – up 7.4pts to 123.1

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Apr-16

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 7.4 points (or 6.4 per cent) to 123.1 in April 2016. Business confidence has now risen 12.5 points over the last three months, since a 2016 low of 110.6 in January. The rise in Business Confidence comes after more improvement on the Australian sharemarket in April, and as commodity prices rebounded in recent months following increased global stimulus. The level of business confidence in April is clearly positive for the economy overall and is now above the five-year average of 116.8. The strongest indicators in April relate to the upcoming year, with expectations of business performance over the next 12 months (+38.1) and whether the next 12 months will be a "good/bad time to invest" (+26.3).

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

Coca-Cola Amatil feels heat of price cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 18 : 28-Apr-16

Coca-Cola Amatil’s 2016 interim results are likely to be negatively affected by the use of discounting to drive sales of carbonated soft drinks and bottled water. Analysts expect the company to announce weaker earnings for the half-year. Consumers’ preferences are changing. Figures from Retail World show that soft drink sales declined from 57.5 per cent of non-alcoholic beverages in 2008 to 50.5 per cent in 2015. Meanwhile, consumption of bottled water has increased from 10.4 per cent to 20.4 per cent.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, RETAIL WORLD PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, COLES GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, PEPSI-COLA COMPANY, ASAHI AND COMPANY, SCHWEPPES AUSTRALIA PTY LTD, DEUTSCHE BANK AG

ANZ-Roy Morgan Australian Consumer Confidence dips to 111.7

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Apr-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 3.5 per cent to 111.7 in the week ended 24 April 2016, reversing the bounce in the previous week and falling back below its long run average. Consumers’ views towards their current personal finances fell by 3.3 per cent, although consumers’ views towards their future personal situation rose by 1.3 per cent. Roy Morgan Research executive chairman Gary Morgan says the fall in consumer confidence can be attributed to the economic uncertainty over the closure of Arrium and Electrolux, and continuing announcements of redundancies at several companies, and is also not surprising when one considers the pressures on the Australian economy – many of these issues are exacerbated by the Reserve Bank’s insistence on keeping interest rates much higher (currently at 2 per cent) than comparable commodity economies.

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

Premier gives McInnes a million reasons to stay around

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 28-Apr-16

Premier Investments has extended the contract of its retail CEO Mark McInnes for another few years, with new incentives added to it. His base remuneration has been increased from $A2 million to $A2.5 million. He is now allowed to sell 800,000 shares, worth $A12.5 million. McInnes’ new remuneration package is yet to be approved by shareholders. Some of them think the package is too generous.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, PETER ALEXANDER, SMIGGLE PTY LTD, DOTTI, PORTMANS PTY LTD, DAVID JONES LIMITED

Surpluses stockpiled to protect state for rainy day

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Original article by Rick Wallace
The Australian – Page: 6 : 28-Apr-16

Victorian Treasurer Tim Pallas unveiled the state’s 2016 Budget on 27 April. The State Government expects to achieve Budget surpluses of $A9.3 billion over the next four years. Capital spending has been increased to $A7 billion a year. Health and education will receive capital investment funding of about $A1 billion each. The Government intends to borrow up to $A16 billion, but it aims to keep net debt below five per cent of gross state product.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY

PM plots possible sale of naval shipbuilder

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 6 : 28-Apr-16

The value of Adelaide-based ASC has risen significantly since the Federal Government announced that its shipyards will be used to build the nation’s new $A50bn submarine fleet. There is renewed speculation that the Government may consider privatising ASC, whose shipyards will also be used to build new naval frigates and patrol boats. Meanwhile, some estimates have suggested that building the submarines in Australia will increase the final cost by 30-40 per cent, although the Government believes that the cost can be reduced significantly by the time construction commences.

CORPORATES
ASC PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIA. DEPT OF FINANCE

Shorten leaves Gillard’s carbon policy behind

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-Apr-16

Opposition Leader Bill Shorten says the Federal Government’s Direct Action policy will be abolished if the Australian Labor Party wins the 2016 election. Labor will aim for a 45 per cent reduction in greenhouse gas emissions reduction by 2030. Shorten’s policy is very different from the carbon price scheme of former prime minister Julia Gillard and quite similar to Malcolm Turnbull’s proposal when he was the opposition leader in 2009.

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

Deflation raises budget rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 28-Apr-16

The consumer price index fell by 0.2 per cent in the March 2016 quarter, with year-on-year growth of 1.3 per cent. The latest inflation data has raised the prospect that the Reserve Bank of Australia could cut official interest rates on 3 May, when the Federal Government will also deliver the 2016 Budget. National Australia Bank now expects the cash rate to be reduced in May, while financial markets now regard the chance of a rate rise to be 55 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED

Rio set to OK $5bn Oyu Tolgoi expansion

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Original article by Matt Chambers
The Australian – Page: 20 : 28-Apr-16

There is growing speculation that Rio Tinto is poised to approve an underground expansion of the Oyu Tolgoi copper and gold mine in Mongolia. Deutsche Bank expects the expansion to be approved during the June 2016 quarter, which is consistent with Rio Tinto’s own stated time-frame. Deutsche suggests that lower construction costs could reduce the cost of the expansion to about $US4bn, compared with Rio Tinto’s $US4.9bn estimate in October 2014.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, TURQUOISE HILL RESOURCES LIMITED

Fortescue stays disciplined on debt

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Original article by Paul Garvey
The Australian – Page: 20 : 28-Apr-16

Fortescue Metals Group will reduce the annual interest bill on its debt by $US48m by redeeming some $US577m ($A757.8m) of senior unsecured notes. These notes were due to be redeemed in 2019, but the iron ore group intends to do so on 1 June 2016. CEO Nev Powers says repaying debt will continue to be a priority for Fortescue, which has repaid or redeemed some $US1.7bn worth of debt in the last year.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG