Author: roymorgansocial

Citi chooses BHP as preferred big miner

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 15-Jan-16

Citigroup is upbeat about BHP Billiton, issuing a "buy" rating on the stock and a share price target of $A18. The investment bank has also indicated that it now prefers BHP over rival mining giant Rio Tinto, citing factors such as BHP’s significant underperformance during the last six months and the outlook for iron ore. Citigroup expects the price of the steel input to average $US35 per tonne over the next several years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP,{SPAC}RIO TINTO LIMITED – ASX RIO,{SPAC}CITIGROUP PTY LTD,{SPAC}FORTESCUE METALS GROUP LIMITED – ASX FMG,{SPAC}SANTOS LIMITED – ASX STO,{SPAC}WOODSIDE PETROLEUM LIMITED – ASX WPL,{SPAC}BEACH ENERGY LIMITED – ASX BPT

CIMIC in $256m hostile bid for Sedgman

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 14-Jan-16

Australian-listed CIMIC Group is seeking full ownership of engineering firm Sedgman, in which it holds a 37 per cent stake. Sedgman’s shares closed at $A0.79 on 13 January 2016, compared with CIMIC’s cash offer of $A1.07 per share. Sedgman will commission an independent expert’s report before making a recommendation to shareholders regarding the bid. CIMIC launched the bid after Sedgman rejected a number of requests, which included a second board representative.

CORPORATES
CIMIC GROUP LIMITED – ASX CIM, SEDGMAN LIMITED – ASX SDM, GRUPO ACS, HOCHTIEF AG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BARMINCO PTY LTD, AUSDRILL LIMITED – ASX ASL, MORGANS FINANCIAL LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, DEVINE LIMITED – ASX DVN

Wealthy accept super tax rise, adviser says

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Original article by Sally Rose, Joanna Mather
The Australian Financial Review – Page: 4 : 14-Jan-16

There is growing recognition that superannuation tax breaks are too generous for the wealthy. Under the current regime, the super contributions of those earning less than $A300,000 a year are taxed at 15 per cent. A tax rate of 30 per cent applies to the contributions of those with annual earnings of more than $A300,000. Deloitte has proposed reducing the tax rate on super for low-income earners to six per cent and raise it to 34 per cent for those earning between $A180,000 and $A300,000.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RICE WARNER ACTUARIES PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, FINANCIAL SERVICES COUNCIL

Essendon turns to business for cash

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 & 2 : 14-Jan-16

Essendon Football Club posted a profit of $A720,000 in 2015, following a loss of $A3.2m in 2014 in the wake of the sports supplements scandal. The embattled club could face costs of up to $A20m as a result of likely legal action by the 34 current and past players who have been banned for the 2016 season for taking the prohibited supplements. Essendon will be seeking financial support from its network of wealthy business leaders as it prepares to deal with the fallout from the Court of Arbitration for Sport’s ruling. The Australian Football League may also face significant legal costs.

CORPORATES
ESSENDON FOOTBALL CLUB, AUSTRALIAN FOOTBALL LEAGUE, PORT ADELAIDE FOOTBALL CLUB, FUSION STRATEGY, KIA MOTORS AUSTRALIA PTY LTD, TOLL HOLDINGS LIMITED, ADIDAS AUSTRALIA PTY LTD, TRUE VALUE SOLAR HOLDINGS PTY LTD, COURT OF ARBITRATION FOR SPORT, SPORTSLAW.COM.AU

Megastar Millionaire wins investor vote

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Original article by Trevor Chappell
The Australian Financial Review – Page: 23 : 14-Jan-16

MSM Corporation International listed on the Australian sharemarket on 13 January 2016, via a reverse takeover of Minerals Corporation. The digital media and entertainment group has developed Megastar Millionaire, a digital platform that allows users to view and vote on contestants in online talent shows. MSM shares closed at $A0.091, compared with an issue price of $A0.06 in an IPO that raised $A7m.

CORPORATES
MSM CORPORATION INTERNATIONAL LIMITED – ASX MSM, MINERALS CORPORATION LIMITED, DIGITAL RIOT

We’ve changed: HSU wants back in the ALP fold

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Original article by Mark Coultan, Elizabeth Colman
The Australian – Page: 1 & 4 : 14-Jan-16

The Heath Services Union ended its affiliation with the Australian Labor Party in 2011, in the wake of several high-profile fraud cases against union officials. The New South Wales branch of the union has approached Labor about renewing its affiliation, and state secretary Gerard Hayes says it has changed over the last few years. He has also stressed that his push for reaffiliation is not motivated by political ambitions.

CORPORATES
HEALTH SERVICES UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNTY COURT OF VICTORIA, UNIONS NSW, POLICE ASSOCIATION OF NEW SOUTH WALES, NEW SOUTH WALES TEACHERS’ FEDERATION, NURSES AND MIDWIVES ASSOCIATION, FLIGHT ATTENDANTS’ ASSOCIATION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION

7-Eleven workers underpaid $31,000

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Original article by Mathew Dunckley
The Australian Financial Review – Page: 8 : 14-Jan-16

The Fair Work Ombudsman has taken a 7-Eleven franchisee to court over incorrect wages paid to 21 employees. Jason Yuan, who operates two stores in Brisbane, faces maximum penalties of up to $A10,200 per breach if the Federal Circuit Court finds that he failed to pay public holiday penalty rates, shift penalty rates and casual loadings to his workers.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, VIPPER PTY LTD, VIPRUS PTY LTD, FEDERAL CIRCUIT COURT OF AUSTRALIA

Iron ore price slide causes more delays for Sundance

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Original article by Tess Ingram
The Australian Financial Review – Page: 23 : 14-Jan-16

China Gezhouba Group has been forced to delay signing a contract to develop transport infrastructure for Sundance Resources’ iron ore project in Africa. The state-owned group has sought to postpone signing the agreement with the Cameroon Government due to the latter’s financing issues in the wake of the downturn in the iron ore price. China Gezhouba Group will build port and rail facilities for the Mbalam-Nabeba project.

CORPORATES
SUNDANCE RESOURCES LIMITED – ASX SDL, CHINA GEZHOUBA GROUP COMPANY LIMITED, ANSHAN IRON AND STEEL COMPANY

ANZ tips iron ore to retest lows, surplus

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Original article by Timothy Moore
The Australian Financial Review – Page: 26 : 14-Jan-16

The iron ore price fell by 39 per cent during 2015, reaching a low of $US38.30 an ounce in mid-December. The price of the steel input has since recovered slightly, but Daniel Hynes and Anurag Soin of the ANZ Bank expect it to retreat again when Chinese steel mills restock following the Chinese New Year holiday period. Hynes and Soin are bearish about the outlook for iron ore in 2016, forecasting a 2.8 per cent decline in demand for steel in China.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BLOOMBERG LP, ROY HILL IRON ORE PTY LTD

Australian Roy Morgan Business Confidence declines further in December

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Jan-16

A Roy Morgan Business Single Source survey has found that Australian business confidence fell by 4.2 points to 114.5 in December 2015, following an 0.6 per cent decline in November. The combined drop of 4.8 points (or four per cent) over the last two months is a likely indication that the initial burst of confidence following Malcolm Turnbull becoming Prime Minister is beginning to "cool off", although business confidence remains 11.6 per cent above the level prior to his appointment. The drop in business confidence in December was mainly due to deterioration in the outlook for the Australian economy over the next 12 months, which has fallen to its lowest level since August. Despite this poor outlook for Australia over the coming year, businesses still maintain a positive attitude, with 60 per cent agreeing that the next 12 months will be a good time to invest in growing their business, well up on the 51 per cent seen in August.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ