Author: roymorgansocial

Woolies to decide fate of Masters in new year

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Original article by Catie Low
The Australian Financial Review – Page: 13 & 18 : 27-Nov-15

Woolworths chairman Gordon Cairns has conceded that the retailer must take action on its Masters joint venture, conceding that annual losses of $A200m are not sustainable. However, he says Woolworths will wait until a five-year strategic plan for Masters is finalised in 2016 before deciding on its future. Cairns remains convinced that the Australian home improvement market can support a rival to Bunnings. He has also indicated that Woolworths is unlikely to sell its Big W department store chain.

CORPORATES
WOOLWORTHS LIMITED – ASX WOWMASTERS HOME IMPROVEMENT AUSTRALIA PTY LTDBIG W DISCOUNT STORESLOWE’S COMPANIES INCORPORATEDBUNNINGS GROUP LIMITED

Victims earn paid leave from work

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Original article by Jessica Marszalek
The Courier-Mail – Page: 12 : 26-Nov-15

Prime Minister Malcolm Turnbull says national domestic violence leave is being examined by the Productivity Commission in its review of the Fair Work Act. Turnbull is also open to considering an Australian Labor Party proposal for all workers to have access to five days of family violence leave. However, Small Business Minister Kelly O’Dwyer is concerned that such leave may deter employers from hiring women. The Queensland Government plans to offer 10 days of domestic violence leave to all public servants.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BRISBANE CITY COUNCIL, GRIFFITH UNIVERSITY

What will stop the iron ore drop?

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 26-Nov-15

The downturn in the iron ore price has prompted some observers to forecast that it will fall below $US40 per tonne. However, Daniel Morgan of UBS says a number of factors may bode well for the steel input’s outlook. They include the expectation that more smaller producers will withdraw from the market and the potential for the tailings dam disaster at the Samarco project to reduce supply in the short-term. On the other hand, the outlook for the Chinese economy and US interest rates may put further downward pressure on iron ore.

CORPORATES
UBS HOLDINGS PTY LTD, SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, METAL BULLETIN PLC, MORGAN STANLEY AND COMPANY INCORPORATED, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, UNITED STATES. FEDERAL RESERVE BOARD

BHP dividend not sacred

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Original article by Matthew Stevens, Amanda Saunders, Mark Ludlow
The Australian Financial Review – Page: 1 & 10 : 26-Nov-15

BHP Billiton’s progressive dividend policy is under scrutiny amid falling commodity prices and a downturn in its share price. BHP chairman Jac Nasser has indicated that the policy will be reviewed when the group’s 2015-16 interim results are released in February 2016. The progressive dividend policy was introduced in 2001 by former chairman Don Argus, who says it was never intended to be in place permanently. BHP has not reduced its dividend payout since 1988.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, RIO TINTO LIMITED – ASX RIO, QUEENSLAND RESOURCES COUNCIL LIMITED, BILLITON PLC

TransGrid’s $10.3b sale boosts grid

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Original article by Angela Macdonald-Smith, Anthony Macdonald, Sarah Thompson
The Australian Financial Review – Page: 1 & 8 : 26-Nov-15

Spark Infrastructure and Hastings Funds Management are members of the international consortium that will acquire New South Wales-based TransGrid. Canada’s Caisse de depot et placement du Quebec and two Middle Eastern sovereign wealth funds hold the largest stakes in the winning consortium, which will pay $A10.3bn for the electricity transmission grid. Simon Mawhinney of Allan Gray says the consortium is paying a "full price" for TransGrid, although the sale price has been criticised by unions.

CORPORATES
TRANSGRID, SPARK INFRASTRUCTURE GROUP – ASX SKI, HASTINGS FUNDS MANAGEMENT LIMITED, CAISSE DE DEPOT ET PLACEMENT DU QUEBEC, ALLAN GRAY AUSTRALIA PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES. THE TREASURY, ELECTRICAL TRADES UNION, UNITED SERVICES UNION, PORT OF NEWCASTLE, SYDNEY AIRPORT – ASX SYD, ELECTRANET SA, AUSTRALIANSUPER PTY LTD, QIC LIMITED, IFM INVESTORS PTY LTD, CHINA INVESTMENT CORPORATION, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, ENDEAVOUR ENERGY LIMITED, AUSGRID PTY LTD, ENERGY SUPPLY ASSOCIATION OF AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

Woolies shareholders look for green shoots

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 26-Nov-15

Woolworths’ strategy to turn around the performance of its supermarkets division is likely to come under scrutiny at its AGM on 26 November 2015. Some shareholders do not expect any real improvement in the business for another 6-12 months, following Woolworths’ move to reduce grocery prices and ramp up investment in its supermarkets. The future of assets such as the Masters and Big W businesses are also likely to be a key focus for investors.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LUMINIS PARTNERS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, BEST AND LESS PTY LTD, NBN CO LIMITED

McGrath rating has rivals crying foul

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Original article by Michael Bleby
The Australian Financial Review – Page: 35 : 26-Nov-15

Rival firms have questioned figures in the prospectus of McGrath Real Estate which suggest that the firm has a 3.2 per cent share of Australia’s residential sales market, ranking it the nation’s third-largest. Harcourts MD Mike Green argues that most of McGrath’s sales are in Sydney’s eastern suburbs and it would have a much lower ranking based on the number of properties sold rather than the dollar value. McGrath is slated to list on the sharemarket in December 2015.

CORPORATES
McGRATH REAL ESTATE PTY LTD, HARCOURTS REAL ESTATE PTY LTD, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, RAY WHITE REAL ESTATE, LJ HOOKER (AUSTRALIA) PTY LTD, FIRST NATIONAL REAL ESTATE GROUP

Turnbull rejects ‘slash and burn’ approach to spending

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Original article by David Uren
The Australian – Page: 2 : 26-Nov-15

The Australian Government does not intend to include deep cuts in spending in its December 2015 Budget update. Prime Minister Malcolm Turnbull said on 25 November that spending cuts must not compromise economic growth. Westpac chief economist Bill Evans does not believe that Australia’s "AAA" credit rating is under threat.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Connected families flowing fast to streaming

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Original article by Chris Griffith, Gina Rushton
The Australian – Page: 3 : 26-Nov-15

It is estimated that some 10 per cent of Australian households now have access to Netflix, while rival subscription video-on-demand (SVOD) provider Stan has indicated that it has nearly 400,000 subscribers. Research by Telsyte shows that the average household now boasts more than nine internet-connected devices, and more people are opting to watch TVs and movies via SVOD than free-to-air TV.

CORPORATES
NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, TELSYTE PTY LTD, FOXTEL MANAGEMENT PTY LTD, YOUTUBE INCORPORATED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, PRESTO ENTERTAINMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, RUGBY WORLD CUP LIMITED, THE EMIRATES MELBOURNE CUP

Rio Tinto to approve $US1b South of Embley expansion

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Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 19 : 26-Nov-15

Australian-listed Rio Tinto has declined to comment on speculation that its board of directors is about to approve development of its South of Embley bauxite project in Queensland. The $A1.4bn project has been delayed due a range of factors, including environmental concerns. Annual production is expected to be around 22.5 million tonnes, and this could potentially rise to around 50 million tonnes per annum.

CORPORATES
RIO TINTO LIMITED – ASX RIO