Author: roymorgansocial

BHP targets copper lift at Olympic Dam

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Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 6-Apr-16

BHP Billiton now expects to be able to ramp up copper production at the Olympic Dam mine in South Australia to 280,000 tonnes a year at a cost of less than $US500m ($A655m). The resources giant indicated in late 2015 that it could lift annual production to 255,000 tonnes over five years without significant capital investment. BHP expects the mine’s copper output to top 200,000 tonnes in 2015-16, and it aims for annual production of 220,000 tonnes by 2019. BHP has forecast that global demand for copper will exceed supply by 2020.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

Optus to cut hundreds of jobs in pursuit of ‘sustainable growth’

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Original article by Max Mason
The Australian Financial Review – Page: 5 : 5-Apr-16

Optus will reduce its workforce by up to 480 positions within its consumer and enterprise divisions. The telco stated on 4 April 2016 that the number of redundancies had not yet been determined, as some workers will be relocated to other divisions. Optus said costs must be reduced to ensure "sustainable growth".

CORPORATES
SINGTEL OPTUS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, VODAFONE HUTCHISON AUSTRALIA PTY LTD, ENGLISH PREMIER LEAGUE, SINGAPORE TELECOMMUNICATIONS LIMITED

Assets back above pre-GFC peak

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Original article by David Uren
The Australian – Page: 4 : 5-Apr-16

Data from the Reserve Bank shows that the total value of Australians’ household assets compared with average household disposable income has risen above the high of 8.5 times recorded prior to the global financial crisis. This ratio declined to 6.8 times during the GFC. The figures also show that average debt comprises 21.6 per cent of the value of household assets, down from 23.7 per cent at the end of 2011.

CORPORATES
RESERVE BANK OF AUSTRALIA

Japanese buyers demand cheaper Australian coal

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 11 : 5-Apr-16

The downturn in coal prices and a global oversupply is expected to result in Japan’s power companies securing a lower contract price in current negotiations with Australian thermal coal producers. The annual contract price is usually higher than the spot price, but the utilities are believed to be seeking a discount of at least 10 per cent on the previous contract price of about $US67 per tonne. RBC Capital Markets forecasts that the thermal coal price will rebound to around $US65/tonne in 2018.

CORPORATES
RBC CAPITAL MARKETS, IHS GLOBAL INSIGHT INCORPORATED, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, TOHOKU ELECTRIC POWER CORPORATION, ADANI ENTERPRISES LIMITED, ROY HILL HOLDINGS PTY LTD, AUSTRALIA. EXPORT FINANCE AND INSURANCE CORPORATION, ANGLO AMERICAN PLC, TAURUS FUNDS MANAGEMENT PTY LTD, STANMORE COAL LIMITED – ASX SMR, VALE SA, SUMITOMO CORPORATION

Libs push case for cuts, Shorten targeted on tax

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Original article by David Crowe, Paige Taylor
The Australian – Page: 4 : 5-Apr-16

Treasurer Scott Morrison has warned that any spending promise made by the Opposition in the lead-up to the federal election will be funded via tax increases. Morrison has stressed that the Federal Government aims to reduce taxes, and highlighted the need for businesses to receive tax relief in order to create jobs and stimulate the economy. Meanwhile, the Australian Labor Party proposes to increase government revenue by $A105bn over 10 years via a series of tax reform measures.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

L-NP in front again as Turnbull shows leadership

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Original article by Gary Morgan, Roy Morgan Research
Morgan Poll Update – Page: Online : 4-Apr-16

This week’s Morgan Poll lift in L-NP support (now L-NP 52.5% cf. ALP 47.5%) shows Turnbull has re-established the Federal Government as "better managers" by using the ABCC debate to link economic management to union corruption in the building and construction industry. The Federal Opposition has stated they will campaign at the Federal Election on increasing Federal funding including Health and Education (both State issues) from raising significant revenue from elimination of taxation minimisation. Last weekend Turnbull "cleverly" outmanoeuvred the States and Federal Opposition by neutralising health and education funding by offering State Premiers the right to raise their own State income tax – good policy but political suicide! In these difficult times, the only real solution is to cut Local, State and Federal Government spending.

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

Investors approve STW, WPP merger

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Original article by Max Mason
The Australian Financial Review – Page: 16 : 5-Apr-16

More than 99 per cent of STW Communications Group shareholders have endorsed a proposed merger with WPP Group’s Australian division. STW will change its name to WPP AUNZ and retain its Australian sharemarket listing. It will be headed by STW CEO Mike Connaghan, who has flagged an eventual reduction in the number of businesses owned by the combined group. It will boast revenue of about $A850m.

CORPORATES
STW COMMUNICATIONS GROUP LIMITED – ASX SGN, WPP GROUP PLC, SINGLETON, OGILVY AND MATHER HOLDINGS PTY LTD, CAVENDISH SQUARE

Arrium’s future hangs in balance

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Original article by Paul Garvey, Michael Owen
The Australian – Page: 19 & 20 : 5-Apr-16

South Australian Treasurer Tom Koutsantonis has urged the nation’s banks to provide assistance to debt-laden steel maker and iron producer Arrium. Concern about the future of the Whyalla steelworks has deepened after Arrium’s lenders rejected a bailout plan from Blackstone-owned GSO Capital Partners. The lenders, who rank as unsecured creditors, would have received just $A0.55 in the dollar if the $US927m ($A1.2bn) recapitalisation proposal had been approved.

CORPORATES
ARRIUM LIMITED – ASX ARI, GSO CAPITAL PARTNERS LP, THE BLACKSTONE GROUP LP, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, ARGAND PARTNERS, CERBERUS CAPITAL MANAGEMENT LP, KKR AND COMPANY LP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

New home approvals slow for fourth month

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Original article by Michael Bleby
The Australian Financial Review – Page: 32 : 5-Apr-16

New figures show that a total of 232,194 new dwellings were approved across Australia in the year to February 2016, compared with 234,002 in the year to January. A total of 115,115 apartments, townhouses and semi-detached dwellings were approved in the year to February, after peaking at 120,953 in the year to October 2015.

CORPORATES
HOUSING INDUSTRY ASSOCIATION LIMITED

L-NP in front again as Turnbull shows leadership

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 4-Apr-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 three per cent to 52.5 per cent. The poll, which was carried out on the weekends of 26-27 March and 2-3 April 2016, also shows that the Coalition’s primary vote has risen by two per cent to 42 per cent, while the Roy Morgan Government Confidence Rating has risen by 2.5 points to 106.

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