Author: roymorgansocial

Mentha steps in to fix Arrium

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 7 : 14-Apr-16

KordaMentha’s Mark Mentha says he will consider every option for restructuring steelmaker and iron ore miner Arrium. Mentha was appointed as administrator of Arrium after the Australian Workers’ Union, lenders and bondholders succeeded in removing Grant Thornton from the role. Mentha says Arrium’s collapse was primarily due to a decline in relations between the group’s board and its lenders. The first creditors’ meeting is scheduled for 19 April 2016.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, GRANT THORNTON AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MOLY-COP, GSO CAPITAL PARTNERS LP, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ANSETT AUSTRALIA HOLDINGS LIMITED

Spot pricing threatens LNG supply glut

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Original article by Paul Garvey, Matt Chambers
The Australian – Page: 19 & 22 : 13-Apr-16

Woodside Petroleum CEO Peter Coleman has expressed concern that any move to adopt spot pricing for LNG could result in an oversupply and subsequent downward pressure on prices. He noted that this was the outcome when other commodities shifted to a spot pricing system. Royal Dutch Shell CEO Ben van Beurden expects long-term contracts to continue to be the primary mechanism for setting LNG prices, but he has suggested that these contracts could eventually be linked to the Henry Hub spot gas price rather than the crude oil price.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, CHEVRON CORPORATION

The alternative to a Bank Commission – tackle Australia’s massive ‘cash economy’

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Original article by Gary Morgan
Market Research Update – Page: Online : 12-Apr-16

The cost and distraction of a Bank Royal Commission would be expensive and unnecessary. Banks have high customer satisfaction ratings. Today Australia needs the banks and other financial institutions to be more involved in helping businesses and their customers in difficult financial times. Much more important to the electorate is Australia’s massive real unemployment and under-employment – in March 11 per cent unemployed and 7.8 per cent under-employed . The situation will not improve with recent industry lay-offs. Many of Australia’s business failures have been caused by falling commodity prices and unrealistic work practices upheld by outdated industrial relations laws. With the lack of sufficient work many Australians see no alternative but to be part of the massive cash economy. Both sides of politics need to present to the electorate policies which tackle this problem – only then will State and Federal Governments have any hope of cutting the massive government deficit and collecting sufficient additional revenue needed for education, hospitals, roads, transport, etc.

CORPORATES
ROY MORGAN RESEARCH LIMITED, ARRIUM LIMITED – ASX ARI, WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, QUEENSLAND NICKEL PTY LTD

Consumer Confidence down for 4th week

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Original article by Gary Morgan
Market Research Update – Page: Online : 12-Apr-16

ANZ-Roy Morgan Consumer Confidence fell again this week – down for the fourth week in a row to 112.0 (down 4.4pts in a month). Driving this week’s fall was a deterioration of the index comparing personal financial situations to this time last year – with just 29 per cent (down 3ppts) of Australians saying they are "better off" financially than this time last year and now 26 per cent (up 3ppts) of Australians saying they are "worse off" financially. This week’s fall in ANZ-Roy Morgan Consumer Confidence coincided with last week’s poor economic news: iron ore miner and steel manufacturer Arrium possibly closing its Whyalla steel smelters and putting up to 10,000 jobs across Australia at risk; hundreds of truck drivers threatening a truck convoy to Canberra protesting against owner-drivers being put out of business by the previous Labor Government’s legislation favouring large trucking companies; and more poor publicity on banks and the financial industry resulting in Opposition Leader Bill Shorten promising a Bank Royal Commission if elected.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ARRIUM LIMITED – ASX ARI, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. ROAD SAFETY REMUNERATION TRIBUNAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA

Don’t panic about property, HSBC says

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Original article by Michael Bleby
The Australian Financial Review – Page: 7 : 13-Apr-16

HSBC economist Paul Bloxham says that while Australia’s booming residential construction market faces a number of potential risks, these can be managed. He argues that when the construction boom wanes it will be replaced by growth in the services industry as a driver of the economy. House prices increased by nine per cent in 2015, but Bloxham forecasts growth of 3-4 per cent in 2016.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, BLOOMBERG LP, RESERVE BANK OF AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence on the skids – down 1.4pts to 112.0

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Apr-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 1.2 per cent to 112.0 in the week ended 10 April 2016, having fallen 2.6 per cent over the previous three weeks. While it is always difficult to pinpoint the driving forces behind confidence, it seems likely that the current discussions on policy reform ahead of the Federal Budget in May, as well as the recent weakness in equity markets, are affecting consumers’ confidence. Consumers’ views towards their current personal finances fell by 5.5 per cent, while consumers’ views towards the economic outlook in the next 12 months fell by two per cent.

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

Modelling shows company tax cut ‘not in national interest’

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Original article by Ben Potter
The Australian Financial Review – Page: 4 : 13-Apr-16

Victoria University’s Centre of Policy Studies has released economic modelling which concludes that a corporate tax rate cut would in turn result in a reduction in real incomes. The modelling was undertaken by Dr Janine Dixon, who says that while a lower company tax rate would increase domestic production, real incomes would be cut by between $A800 and $A2,000 in present value terms. The corporate tax rate is currently 30 per cent.

CORPORATES
VICTORIA UNIVERSITY. CENTRE OF POLICY STUDIES, AUSTRALIA. DEPT OF THE TREASURY, MELBOURNE ECONOMIC FORUM

The top tasks facing Rio’s new chief

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 13-Apr-16

There is speculation that Rio Tinto will pursue acquisitions when Jean-Sebastien Jacques succeeds Sam Walsh as CEO in July 2016, while asset sales may also potentially be on the agenda. Jacques is largely an unknown quantity to most investors, so one of his first priorities will be to outline his strategy for Rio Tinto. The group will also need to diversify its operations to reduce its reliance on iron ore, while free cash flow and big data are also likely to be priorities for Jacques.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, TURQUOISE HILL RESOURCES LIMITED, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

ATO leads global attack on Panama tax haven

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 1 & 9 : 13-Apr-16

The Australian Taxation Office’s Mark Konza will chair a meeting of international tax officials in Paris. The meeting has been convened by Australia’s Tax Commissioner, Chris Jordan, in response to the leaking of the tax haven documents of Panama law firm Mossack Fonseca. Jordan will propose establishing a global investigation into tax evasion which would involve tax experts from 28 nations. The leaked documents include the names of about 800 Australians.

CORPORATES
AUSTRALIAN TAXATION OFFICE, MOSSACK FONSECA, INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALISTS, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, JOINT INTERNATIONAL TAX SHELTER INFORMATION AND COLLABORATION NETWORK, AUSTRALIAN CRIME COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Yahoo US deal may see Seven exit JV

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Original article by Darren Davidson
The Australian – Page: 21 : 13-Apr-16

There has been speculation that Australian-listed Seven West Media could seek to exit the Yahoo!7 joint venture if US internet giant Yahoo! divests its news and media assets. The joint venture boated revenue of $A99.6m in 2014-15, and Seven receives 50 per cent of Yahoo!7’s profits. Morgan Stanley recently forecast that global internet groups such as Google and Facebook will account for between $A4bn and $A5bn worth of advertising revenue in 2016.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, YAHOO!7 COMMUNICATIONS AUSTRALIA PTY LTD, YAHOO! INCORPORATED, MORGAN STANLEY AND COMPANY INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, YOUTUBE INCORPORATED, PACIFIC MAGAZINES PTY LTD, DAILY MAIL AND GENERAL TRUST PLC, DAILY MAIL AUSTRALIA, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, VIACOM INCORPORATED, IAC/INTERACTIVECORP, CBS CORPORATION