Author: roymorgansocial

$A likely to dip into the 50c range, says Macro Currency

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 24 : 13-Nov-15

Mark Farrington of Macro Currency Group says the Australian dollar remains overvalued, despite its fall in recent months. He estimates that the currency needs to fall by another 10 per cent to the $US0.50 range as the economy rebalances. Meanwhile, Farrington expects the Reserve Bank to reduce the cash rate another two times in the current monetary policy easing cycle, adding that the first cut could be in the June 2016 quarter.

CORPORATES
MACRO CURRENCY GROUP, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

GST rise in trouble as rebellion in Senate grows

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Original article by Primrose Riordan
The Australian Financial Review – Page: 4 : 12-Nov-15

The majority of cross-bench senators will need to back any push by the Australian Government to increase the GST for it to succeed. However, a number of cross-bench senators have stated their opposition to lifting the GST to 15 per cent, as have several independent MPs in the lower house. The Opposition and the Australian Greens will also vote against any changes to the GST.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAMILY FIRST PARTY AUSTRALIA LIMITED, LIBERAL DEMOCRATIC PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

McGrath to get $112m from company float

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Original article by Samantha Hutchinson
The Australian – Page: 28 : 12-Nov-15

McGrath Real Estate will have a market capitalisation of around $A282m when it lists on the Australian sharemarket in December 2015. The real estate group is offering 134 million shares priced at $A2.10 apiece in its IPO. McGrath Real Estate has raised $A128.2m via an institutional bookbuild that closed on 11 November. Founder John McGrath will retain a 26.7 per cent stake in the business.

CORPORATES
McGRATH REAL ESTATE PTY LTD, JP MORGAN AUSTRALIA LIMITED, BELL POTTER SECURITIES LIMITED, REALOGY CORPORATION, BERKSHIRE HATHAWAY REAL ESTATE SERVICES

Thousands ‘opting out’ of AWU

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Original article by Anthony Klan
The Australian – Page: 2 : 12-Nov-15

The Royal Commission into Trade Union Governance & Corruption has identified some disturbing practices at labour unions. Jeremy Stoljar, counsel assisting the commission, states in a submission released on 6 November 2015 that some employers paid membership fees to the Australian Workers’ Union in Victoria on behalf of "phantom members" who did not exist or were automatically signed up to the union without their knowledge.

CORPORATES
AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, CLEANEVENT PTY LTD, CHIQUITA MUSHROOMS PTY LTD, THIESS JOHN HOLLAND, WINSLOW CONSTRUCTORS PTY LTD, UNIBUILT PTY LTD

Westpac’s Gail Kelly gets $11m in final year

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Original article by Clancy Yeates
The Australian Financial Review – Page: 24 : 12-Nov-15

Westpac’s 2015 annual report shows that former CEO Gail Kelly received $A11.76 million for her last four months at the helm of the bank. This figure comprises $A2.25 million in cash in the year to September 2015 and $A9.51 million in performance share options awarded in prior years. Kelly retired in February 2015.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

BHP dam was flawed, experts said

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Original article by Amanda Saunders, Lia Timson, Matthew Stevens
The Australian Financial Review – Page: 1 & 28 : 12-Nov-15

BHP Billiton has declined to comment on whether it was aware of a 2013 report which raised concerns about the tailings dams at its Samarco iron ore joint venture in Brazil. The report was produced by the Instituto Pristino on behalf of state of Minas Gerais’s Environment Ministry, and concluded that design flaws in the tailings dam system could potentially lead to the catastrophic dam failure that has resulted in a fatal mudslide. The mine is jointly owned by Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, INSTITUTO PRISTINO, SAMARCO MINERACAO SA, DEUTSCHE BANK AG, MOODY’S INVESTORS SERVICE INCORPORATED

Twiggy predicts iron ore prices will fall further

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 21 & 28 : 12-Nov-15

The iron ore price is currently trading at around $US48 per tonne, and Fortescue Metals Group chairman Andrew Forrest has forecast that it could remain below $US50 in the near-term. He has again criticised BHP Billiton and Rio Tinto for ramping up iron ore production during a period of price weakness. Meanwhile, 19.3 per cent of shareholders at Fortescue’s 2015 AGM voted against its remuneration report.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, CITIGROUP INCORPORATED

Asciano break-up ratings risk warning

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 23 : 12-Nov-15

Ports and rail group Asciano currently has a credit rating of "Baa2" with a negative outlook from Moody’s Investors Service. The ratings agency has indicated that Asciano’s credit rating could be downgraded if a proposed takeover and break-up of the group proceeds without a reduction in its debt. The Qube Holdings-led consortium is offering $A9.25 per share, and is hoping to trump the bid from Brookfield Infrastructure Partners.

CORPORATES
ASCIANO LIMITED – ASX AIO, MOODY’S INVESTORS SERVICE INCORPORATED, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, CANADA PENSION PLAN INVESTMENT BOARD, GLOBAL INFRASTRUCTURE PARTNERS, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTBOURNE CREDIT MANAGEMENT, McMILLAN SHAKESPEARE LIMITED – ASX MMS, LIFESTYLE COMMUNITIES LIMITED – ASX LIC, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, MACQUARIE WEALTH MANAGEMENT, AURIZON HOLDINGS LIMITED – ASX AZJ

Nine may save by ceding Saturday night NRL

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 12-Nov-15

Fox Sports owner News Corp is continuing to hold talks with the National Rugby League regarding pay-TV broadcasting rights. The media group has indicated that it is willing to pay $A30m a year to broadcast the Saturday night NRL match, which Nine Entertainment Company acquired as part of a $A925m five-year free-to-air and streaming rights deal earlier in 2015. Nine is said to be seeking to have the cost of its deal reduced by about $A40m a year in return for relinquishing the Saturday night fixture.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOX SPORTS AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN FOOTBALL LEAGUE, AUSTRALIAN RUGBY FOOTBALL LEAGUE, OZTAM PTY LTD, SINGTEL OPTUS PTY LTD, ENGLISH PREMIER LEAGUE

Gary Morgan – Business confidence surveys and selective reporting by the Australian media

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 11-Nov-15

It is impossible to stop "organisations" conducting "questionable" polls – sometimes ill-conceived and too often completely self-serving or even mischievous polls. However, it is a disgrace when Australia’s national news services "selectively report" only such polls. Australia’s media has a critical role to play in keeping the Australian people informed. Australia’s major media is concentrated and controlled by too few – probably soon to be fewer! This makes the ethics of journalists and media owners even more important. Good governance dictates journalists must be briefed to report all facts honestly – not report "selectively" to support their own opinion.

CORPORATES
ROY MORGAN RESEARCH LIMITED