Author: roymorgansocial

Unemployment rises to 9.7% in December – Under-employment at record high

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

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate was 9.7 per cent in December 2015, compared with 9.2 per cent in November. The number of people in the workforce now totals 13,007,000 (up 106,000 since December 2014), and 11,751,000 Australians are employed (up 252,000 since December 2014). Meanwhile, the number of people who are under-employed has risen by 188,000 in the last 12 months, to a record 1,434,000 (11 per cent of the workforce). The official unemployment rate was 5.8 per cent in November 2015. Roy Morgan Research executive chairman Gary Morgan says the key point for Prime Minister Malcolm Turnbull and the Coalition Government as they contemplate when to hold the Federal Election is how to properly manage the Australian economy to ensure growth and provide jobs for the growing workforce. Changing industrial relations laws and work practices can only be effective if the "cash economy" is tackled at the same time – otherwise any efforts at IR reform will be of limited benefit as Government revenue increases will be negligible.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Off-the-plan values plummet in Melbourne

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 8 : 4-Jan-16

Analysis by WBP Property Group shows that there has been a sharp fall in the value of apartments bought off-the-plan in Melbourne during the last two years. The firm has reported that the average value of almost 2,000 apartments fell by around $A40,000 in 2014 and 2015. Kim Quick of Herron Todd White says there has not been a similar downturn in apartment values in Sydney, noting that the residential market has benefited from the New South Wales Government’s infrastructure program.

CORPORATES
WBP PROPERTY GROUP PTY LTD, HERRON TODD WHITE AUSTRALIA PTY LTD

Wheatley’s new radio wagers on TopBetta

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Original article by Sarah-Jane Tasker
The Australian – Page: 16 : 4-Jan-16

EON Sports Radio CEO Glenn Wheatley says the new national sports radio network has secured TopBetta as its exclusive wagering partner. The Australian-listed TopBetta specialises in fantasy wagering, while it also produces sports content. TopBetta and EON will jointly produce a sports program for the digital-only radio network. EON has also secured the Australian radio broadcasting rights to English Premier League matches.

CORPORATES
EON SPORTS RADIO PTY LTD, TOPBETTA HOLDINGS LIMITED – ASX TBH, ENGLISH PREMIER LEAGUE, EON-FM, TRIPLE M CORPORATION PTY LTD, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, G1X

Case for reform is overwhelming

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Original article by
The Australian Financial Review – Page: 38 : 4-Jan-16

The Australian Government should pursue major reforms to the union movement in response to the final report of the Royal Commission into Trade Union Governance and Corruption. While any such reforms will face resistance from unions and the Australian Labor Party, the report demonstrates the need for greater regulation of trade unions and for unions to be subject to the same governance standards as the corporate sector. Editorial.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, HEALTH SERVICES UNION OF AUSTRALIA, GROCON PROPERTY TRUST AUSTRALIA, BORAL LIMITED – ASX BLD, ACTU

Deals boom set to gain new steam

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 1 & 18 : 4-Jan-16

Dealogic notes that some $US129.8bn ($A177.7bn) worth of mergers and acquisitions were announced in Australia during 2015. However, the value of completed deals fell from $US101.2bn to $US97.4bn. Tim Joyce of Macquarie Capital expects M&A activity to increase in 2016, while Aidan Allen of Citigroup anticipates that the retail sector will be among those to be targeted in 2016. He also expects more takeover activity among private equity firms.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, MACQUARIE CAPITAL PTY LTD, CITIGROUP PTY LTD, RBC CAPITAL MARKETS, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, TRANSGRID, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, ASCIANO LIMITED – ASX AIO, BROOKFIELD INFRASTRUCTURE PARTNERS LP, QUBE HOLDINGS LIMITED – ASX QUB

Heavyweight miners predict little respite

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Original article by Perry Williams
The Australian Financial Review – Page: 11 & 22 : 4-Jan-16

Former Rio Tinto CEO Leigh Clifford says commodity prices may not rebound for another 3-5 years, and mining companies with high production costs in particular face challenging conditions. Former Orica chairman Malcolm Broomhead says action is needed to boost labour productivity, and he has urged the Australian Government to pursue reforms in areas such as industrial relations and taxation in order to boost productivity.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ORICA LIMITED – ASX ORI, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, ASCIANO LIMITED – ASX AIO, KKR AND COMPANY LP

Advertising revenue predicted to hit $13.5b

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Original article by Max Mason
The Australian Financial Review – Page: 12 : 4-Jan-16

ZenithOptimedia forecasts that Australian advertising revenue will rise by three per cent in 2016, to $A13.5bn. Digital advertising revenue is expected to grow by 12.1 per cent to almost $A6bn, while outdoor advertising revenue will increase by 8.9 per cent to $A716 million. However, ZenithOptimedia anticipates 0.6 per cent growth in TV advertising revenue, while a sharp decline in newspaper and magazine advertising revenue is expected.

CORPORATES
ZENITH OPTIMEDIA

Households to drive the economy in 2016

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Original article by David Uren, David Crowe
The Australian – Page: 1 & 4 : 4-Jan-16

Federal Treasurer Scott Morrison says Australia’s economic growth remains strong, despite the revised forecasts for 2015-16 and 2016-17 in the recent mid-year Budget update. Morrison adds that household consumption is also strong, and stresses that government policies in 2016 will be aimed at strengthening consumer and business confidence in an election year. Bill Evans of Westpac has identified a further deterioration in the nation’s terms of trade as the largest risk to the economy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Forget the index, it’ll be a picker’s game

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Original article by Vanessa Desloires, Stephen Cauchi
The Australian Financial Review – Page: 20 : 4-Jan-16

Australia’s benchmark S&P/ASX 200 Index ended 2015 at 5,295.9 points. Goldman Sachs forecasts that it will rise to 5,600 in 2016, and Citi expects it to reach 5,900. Meanwhile, David Bryant of Australian Unity says factors such as low interest rates and sustained weakness in commodity prices will weigh on sharemarket returns in 2016. Bryant is particularly bearish about returns from resources and banking stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, DEUTSCHE BANK AG, AUSTRALIAN UNITY LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, PRIME VALUE ASSET MANAGEMENT LIMITED, COMMONWEALTH SECURITIES LIMITED

Resources stocks have huge interest, among their few fans

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Original article by Vesna Poljak
The Australian Financial Review – Page: 11 & 12 : 4-Jan-16

Garth Rossler of Maple-Brown Abbott says resources stocks could perform well in 2016 after a challenging year for the sector in 2015. Meanwhile, Randal Jenneke of T Rowe Price recently warned that the high yields from infrastructure and property stocks may not be sustainable. He says such stocks are likely to be impacted if the US Federal Reserve adopts an aggressive approach to increasing interest rates.

CORPORATES
MAPLE-BROWN ABBOTT LIMITED, T ROWE PRICE GROUP INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, CLSA AUSTRALIA PTY LTD